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Hitachi Reports Higher Q3 Sales, Wider Loss

2/05/2007 01:37:00 PM Eastern

Tokyo – Hitachi reported a 77 percent drop in net income to $11 million while revenues rose 10 percent to $20.9 billion for its fiscal third quarter that ended Dec. 31.

In its digital media and consumer products segment, it reported 3 percent higher revenues to $3.12 billion despite lower sales of plasma TVs and DVD recorders due to falling prices. The overall increase in revenues are reflected in the effect of merging Hitachi air conditioning systems and its home and life solutions operations in April of last year, and the growth of home appliance sales, the company said.

However the segment reported a $160 million operating loss due to wider losses in flat-panel TVs, DVD recorders and other products.

For the nine months ended Dec. 31 digital media and consumer products had $9.5 billion in sales, a gain of 16 percent, with an operating loss of $450 million.

Hitachi also reported that during the third quarter, volume production of plasma display panels was started at a third plant operated by Fujitsu Hitachi Plasma Display Ltd. (FHP), which helped to reduce panel production costs. The company also noted that it made Clarion Co. Ltd. a subsidiary after conducting a tender offer for the company’s shares, with the aim of bolstering its car information systems business.