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Hitachi profit plunges on HDD loss and lack of capital gain

The company also lacked significant one-off capital gains similar to what it posted a year ago.

Losses in HDD (hard disk drives) and PC operations brought down earnings, read an Hitachi statement.

Hitachi also did not have the benefit of a more than $210m gain from the listing in the country of Elpida Memory. However, Hitachi maintained a previous profit forecast of $170m for its full fiscal year through March.

For its most recent quarter ending December, the company posted a $36.0m profit, down from $223.6m a year ago.

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In 2002, Hitachi bought IBM’s hard disk drive business for $2.05bn. But competition from rivals such as Seagate Technology has been fierce and profit margins have been thing. The unit has turned a loss in recent years. During the recent quarter, the unit posted about a $62.2m operating loss.

But Hitachi said its hard disk drive business was on a road to recovery, buoyed by sales of 2.5-inch and 3.5-inch drives. The company said it now expects a smaller full-year operating loss for the unit of $227m than the $302.7m it had originally forecast.

Hitachi’s total revenues grew 6% during the quarter to about $18.9bn from a year ago.

The company posted higher revenues in its information and telecommunication systems division, as well its digital media and consumer products unit, among others.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.