Feeds

Hitachi fiscal loss goes nuclear

Turbine repair, electronic media steal Hitachi's purse

Providing a secure and efficient Helpdesk

Hitachi fell into deep red during fiscal 2006, posting a net loss of 32.8bn yen ($271.6m), compared with a profit of 37.32bn yen ($309m) a year earlier.

Japan's biggest electronics conglom attributes the money dive to the cost of nuclear reactor turbine repairs and the poor performance of its hard drive and flat panel TV operations.

"We are not raising a flag of surrender," Hitachi CEO Nakamura said in a press conference. "We haven't given up on returning these businesses to profitability. We are not considering withdrawing from these businesses."

Company coffers felt the squeeze from a 70bn yen ($579m) bill to repair faulty turbines at nuclear plants operated by Chubu Electric Power and Hokuriku Electric Power and from the construction of a thermal power plant in the US.

Hitachi said its electronics media division suffered from sinking prices in the market, resulting in an operating loss of 58.4bn yen ($483.5m), down from a loss of 35.7bn yen ($295.6m) a year earlier.

The HDD division had an operating loss of 43.7bn yen ($361m), wider than the previous fiscal year's loss of 27bn yen ($223.5m).

Overall, the company's finances, however, looked far less bleak than Hitachi's previous forecast of a 55bn yen net loss ($455.4m) for 2006. The damage was offset by an increase in total sales, lead by its construction equipment division.

Total sales rose 8.3 per cent to 10.24 trillion yen ($84.8bn), from 9.47 trillion yen ($78.4bn) last year.

Hitachi expects to swing back into the green for the current fiscal year, ending March 2008. The company forecasts a net profit of 40bn yen ($331.2m) and sales increasing two per cent to 10.5 trillion yen ($86.9bn). ®

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.