Hitachi Posts Lower CE Sales, 28% Loss
By Steve Smith -- TWICE, 7/28/2009
Tokyo - Hitachi Ltd. reported that its digital media and consumer products business posted a loss and had a 28 percent sales drop compared with the fiscal first quarter of last year.
The operating loss was $140 million for the quarter, ended June 30, with sales dropping to $2.5 billion.
Hitachi blamed the sales drop on the "reduction of overseas sales channels for flat-panel TVs as part of business structural reforms as well as lower sales of optical disk drives and other digital media products," as well as lower air conditioner sales, which is part of the group.
Hitachi said in May that it would split off its consumer business group July 1 and establish a new wholly owned subsidiary called Hitachi Consumer Electronics Co.
The $140 million operating loss was slightly better than the prior year's first quarter despite lower sales and prices. This was due to the switch to buying plasma panels from outside the Hitachi group, reducing overseas sales channels and other actions, the company said.
Company-wide results for the quarter showed a 26 percent drop in sales to $19.7 billion, with a net loss of $945 million due to the ongoing recession.
Reuters reported earlier today that Hitachi plans to spend $2.9 billion to buy out five listed subsidiaries to pool its resources to turn a profit. One of the units is Hitachi Maxell, known as the Maxell blank media and accessories brand in the U.S.
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