Feeds

Hitachi fiscal loss goes nuclear

Turbine repair, electronic media steal Hitachi's purse

Designing a Defense for Mobile Applications

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). ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.