Hitachi reports quarterly loss on higher costs

Hitachi Ltd. reported a quarterly loss of 17.4 billion yen ($167 million) Thursday amid a global slowdown in export markets and a surge in prices for oil and other raw materials.

The company also slashed its profit forecast for the fiscal year ending March to 15 billion yen ($146 million) from 40 billion yen. Sales were projected at 10.9 trillion yen ($105.8 billion), down 3 percent from last year.

For the July-September second quarter, soaring raw materials costs and slack demand hurt Hitachi's automotive systems and semiconductors businesses, the company said. Sales slumped sharply in Europe and the United States.

The loss in the three months ended Sept. 30 compared to a net profit of 558 million yen in the same period last year.

Group sales in the quarter fell 1.3 percent to 2.80 trillion yen ($26.6 billion) from 2.77 trillion the same quarter last year, Hitachi said.

Sales were flat in electronic devices and power and industrial systems, while they declined in digital media products. Hitachi's financial services sales slumped 14 percent compared to the same period last year.

By market, Hitachi sales in Europe dived 8 percent in the quarter, 4 percent in North America, and 1 percent in Japan. Overall sales in Asia, however, gained 4 percent, largely due to growth in China.

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