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l Hitachi Transport System, Ltd.
Sales decreased year over year.
In the domestic logistics business, despite much
lower volume from existing customers, sales were on
a par with the previous fiscal year, due to strong
growth in new contracts for third party logistics in
fields such as retailing, information and telecommuni-
cations, and lifestyle-related areas, including the
addition, through a transfer, of a distribution subsid-
iary of Uchida Yoko Co., Ltd. Sales in the global
logistics business were down year over year.
Although the company worked to strengthen its
business bases in North America, Europe, China and
elsewhere in Asia, handled volume declined due to
the impact of the global economic weakness.
Earnings dropped year over year due to the lower
sales, although the company implemented measures
to improve transport efficiency, conduct efficient
distribution activities and cut operating expenses.
The segment recorded an 8% fall in revenues year over year,
to ¥763.6 billion (U.S.$8,211 million), due to lower revenues
at Hitachi Transport System, Ltd. and in other services busi-
nesses on account of soft demand.
Segment profit dropped 21% year over year, to ¥19.4 billion
(U.S.$209 million), due to lower revenues and other factors.
REVIEW OF OPERATIONS
Hitachi฀Transport฀System’s฀Keihin฀Distribution฀
Center฀Boasts฀Extensive฀Security
Hitachi Transport System’s Keihin Distribution Center in Tokyo
boasts enhanced security features as a core base for the
provision of third-party logistics solutions and information and
telecommunication solution services in the Keihin area.
Primarily handling customers’ computer and medical equip-
ment, the six-story center has a total floor area of approxi-
mately 29,500 m2 on a site of approximately 9,800 m2 and
uses room access control, a networked surveillance system
and other security measures to provide customers with safe
and secure distribution services.
Share of Revenues
8%
Millions of yen
Millions of
U.S. dollars
FY2009 FY2008 FY2009
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ¥ 763,665 ¥ 830,834 $ 8,211
Segment profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,423 24,515 209
Capital investment (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . 25,202 37,794 271
Depreciation (Property, plant and equipment) . . . . . . . . . . . . . . . . . . . . . . . . 32,840 36,653 353
R&D expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,692 4,508 50
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,374,882 1,612,556 14,784
Number of employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,538 31,629 –
33
Hitachi, Ltd. Annual Report 2010