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Hitachi, Ltd. Annual Report 2007
24
Power Systems
Sales rose year on year supported by
growth in thermal power plants for overseas
markets, mainly Europe. However, earnings
declined due to repair costs for turbine
damage at certain nuclear power plants in
Japan and cost overruns in construction of
an overseas thermal power plant.
Automotive Systems
Sales rose due to the consolidation of
Clarion and the transfer of Hitachi Mobile
Co., Ltd. from the Logistics, Services &
Others segment. Earnings were also up
due to cost cutting.
Urban Planning and
Development Systems
Both sales and earnings were higher than
a year earlier. One factor was healthy
growth in sales of elevators and escala-
tors, mainly in the Chinese market.
Another contributing factor was growth in
Segment revenues rose 8%, to ¥3,022.2 billion
(U.S.$25,613 million). This reflected growth mainly in
overseas markets for construction machinery and elevators
and escalators, in addition to higher sales in automotive
systems resulting from the December 2006 consolidation of
Clarion Co., Ltd. Operating income dropped 61% year on
year, to ¥36.3 billion (U.S.$308 million) due to lower earnings
in power systems.
Power & Industrial Systems
Hitachi delivered this
10000-series train to
Tokyo Metro Co., Ltd.
Clarion’s car navigation Standardized elevator
the solutions business, which includes
building management services and ESCO
(Energy Service COmpany) operations.
Hitachi Construction
Machinery Co., Ltd.
Both sales and earnings rose year on year, the
result of robust growth in construction machin-
ery for the Japanese and global markets.
Hitachi Plant Technologies,
Ltd.
In April 2006, Hitachi Plant Engineering &
Construction Co., Ltd. merged with part of
Hitachi, Ltd.’s Industrial Systems Group,
Hitachi Kiden Kogyo, Ltd. and Hitachi
Industries Co., Ltd. with the aim of
strengthening the Hitachi Group’s social
and industrial infrastructure systems
business. Hitachi Plant Engineering & Con-
struction was then renamed Hitachi Plant
Technologies, Ltd. This business integration
lifted sales and earnings year on year.