Hitachi posts loss on lower sales


Hitachi, Japan's largest electronics firm, posted a net loss for the first quarter

Staff and wires

TOKYO, Japan -- Hitachi Ltd, Japan's biggest electronics manufacturer, posted a net loss of 8.01 billion yen ($70 million) for the June quarter on Tuesday.

Revenues fell 3.6 percent to 1.87 trillion yen ($15.6 billion).

The results marked the first time the company has ever reported quarterly earnings. Last year Hitachi lost 33.96 billion yen ($284 million).

Hitachi's operating profit of 13.69 billion yen ($114.4 million) exceeded a forecast earlier this month in the Nihon Keizai Shimbun business daily of a five billion yen profit.

Hitachi President Etsuhiko Shoyama said last week the company was likely to post an operating profit for April-June, breaking a four-quarter losing streak and reversing its initial forecasts of a loss for the period.

Yearly forecasts unchanged

He added, however, that the stronger-than-expected first-quarter result did not necessarily bode well for the full year to March, citing the potential impact of U.S. accounting scandals and share price weakness on consumer sentiment.

The company also said on Tuesday it left its earnings targets unchanged for the half year to September.

Hitachi forecast a five billion yen net profit ($41.9 million) for the six months to September 30, despite a projected two percent drop in revenues to 3.85 trillion yen ($32.3 billion).

A rally in U.S. tech stocks overnight caused Hitachi shares to jump in the morning, but the value changed little after the announcement, closing up 4.47 percent to 701 yen.