The HCM Group focused on the management measures outlined in CONNECT TOGETHER 2019, its three-year medium-term management plan, which ends in the fiscal year 2019 under review.
The Group positioned solutions utilizing ICT and IoT as Solution Linkage, which lead to customer business issues of improving safety, productivity, and reducing lifecycle costs (including fuel, maintenance, repair, and other costs), and actively worked on these issues.
In the Parts and Services Business, we are working to increase the penetration of ConSite . In particular, in fiscal 2017, we began providing ConSite OIL, the first in the construction machinery industry to remotely detect oil conditions using sensors and predict failures in engines and hydraulic components. Following Europe, Japan, and Australia, we launched this service in Southeast Asia and China. Through these and other initiatives, we are working to reduce the lifecycle costs of our customers worldwide.
In the mining business, we worked to expand sales of the rigid dump truck AC-3 series, which realized advanced vehicle body stabilization control through a collaboration with the Hitachi Group.
In addition, we are actively working to provide operation control systems for mining machinery that contributes to more efficient mining operations and to develop autonomous haulage systems (AHS). In order to achieve commercialization early this year, we have been working with Whitehaven Coal in Australia.
In addition, H-E Parts and Bradken, which we acquired before, are strengthening their solutions business, which promotes components servicing related to mining facilities. Bradken began the production of genuine bodies for dump trucks of Hitachi Construction Machinery this fiscal year, and has further deepened its collaboration within group companies.
In the rental business, we have invested in ACME in the United States and established Synergy Hire in the United Kingdom. We are also strengthening our business in China. Going forward, we plan to further develop this business in Asia and Oceania.
As described above, we have been working to expand earnings by strengthening the value chain other than new machinery sales (parts services, solutions business, rental business, and businesses other than new machinery sales).
On the other hand, under growing uncertainty about the global outlook, the worsening of the new coronavirus infections (COVID-19) worldwide from the fourth quarter caused demand for hydraulic excavators to decline, the impact of decrease in resource prices on demand for mining machinery from small-and medium-sized mining companies, shipment delay due to typhoon ocuured in Japan in the third quarter, and the appreciation of the yen in exchange rates compared with the previous fiscal year.
As a result, revenues for the consolidated period (from April 1, 2019 to March 31, 2020) amounted to 931,347 million yen, a decrease of 9.9% from the previous fiscal year.
In terms of profit items, adjusted operating profit was 76,618 million yen (a decrease of 34.4%), operating income was 72,849 million yen (a decrease of 28.8%), and profit attributable to owners of the parent was 41,171 million yen (a decrease of 39.9%), due to factors such as the decrease in revenue and the appreciation of the yen.
With respect to the non-consolidated results, revenue was 482,571 million yen (a decease of 11.6%), and net income was 33,832 million yen (a decrease of 33.0%), due to the same factors as above mentioned.