Alexa

Hitachi posts $562 million loss in July-September

Hitachi posts $562 million loss in July-September

Hitachi's losses for the July-September quarter swelled to 50.56 billion yen ($562 million) as the maker of everything from homes appliances to nuclear reactors was hit by weak demand abroad and at home.
The result was considerably worse than the company's 17.37 billion yen loss during the same period last year but better than the 82.67 billion yen it lost during the April-June period.
Revenue during the July-September quarter fell 19 percent to 2.23 trillion yen ($24.8 million), resulting in an operating loss of 25.84 billion yen ($287 million), the company said Thursday.
Hitachi said demand began to recover due to global stimulus spending but "conditions remained severe."
Japan's economy "fell short of achieving a self-sustaining recovery, with consumer spending and housing investment lackluster against a backdrop of falling capital investment and worsening employment and personal incomes," it said.
For the April-September half, Tokyo-based Hitachi recorded a loss of 133.2 billion yen on revenue of 4.12 trillion yen. It cited poor performance in several divisions, including power systems, high functional materials, and information and telecommunication systems.
But Hitachi said business improved in the second quarter due to cost cuts and structural reforms.
Earlier this week, the company upgraded its earnings outlook for the full fiscal year through March 2010.
It now expects a narrower net loss of 230 billion yen and higher operating profit of 80 billion yen. It revised down its revenue projection to 8.7 trillion yen from 8.9 trillion yen, saying the "slow pace of recovery in mainly private-sector capital expenditure."
Hitachi bases its earnings on U.S. accounting standards.


Updated : 2021-01-26 15:05 GMT+08:00