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View All NewsUT Group Q1 revenue falls 2.5% as profits tumble, announces acquisition of Hitachi Ibaraki Technical Service
Engineering and technical staffing firm UT Group Co. Ltd. (2146:TYO) reported revenue on Monday fell by 2.5% in the first quarter. Revenue totalled JPY 82.20 billion (USD 543.5 million).
| (JPY millions) | Q1 2023 | Q1 2022 | % change | Q1 2023 (USD millions) |
| Net sales | 82,203 | 84,284 | -2.5% | 543.5 |
| Gross profit | 15,005 | 16,293 | -7.9% | 99.2 |
| Gross margin | 18.2% | 19.3% | - | - |
| EBITDA | 6,052 | 7,426 | -18.5% | 40.0 |
| Operating profit | 5,241 | 6,844 | -23.4% | 34.6 |
| Net Profit | 3,536 | 4,440 | -20.4% | 23.3 |
UT Group also announced it will acquire 51% of outstanding shares of Hitachi Ibaraki Technical Service Ltd. and make it a subsidiary.
As a manufacturing subsidiary of Hitachi, Ltd., Hitachi Ibaraki Technical Service has outstanding know-how and reliable technology and provides contracting and worker dispatch services for the design and manufacturing of electrical machinery and equipment and processed metal products. The company has approximately 650 employees and supports manufacturing by Hitachi, Ltd. and the Hitachi Group in the energy, industrial and mobility fields.
Since UT’s acquisition of all shares of Mito Engineering Service Co., Ltd. (currently UT MESC Co., Ltd.) from the Hitachi Group in July 2020, the Hitachi Group and the UT Group have deepened their cooperation. The strengths and know-how of both groups will be further integrated with the newly announced acquisition of shares, while UT will closely follow the changing needs of clients with the changing times and aim to pursue new service value.
Looking ahead, UT Group forecasts revenue of JPY 169.0 billion (USD 1.11 billion) for the year ended 31 March 2024.
UT Group shares closed on Monday at JPY 2,137 (USD 14.13), up 2.69% on the day. The company has a market cap of JPY 84.54 billion (USD 559.0 million).