Hitachi H1 posts wider loss, keeps forecast

TOKYO, Oct 31: Japan's biggest electronics conglomerate Hitachi Ltd. posted a bigger first-half loss on Tuesday, dragged down by its hard disk drive and energy segments, and kept its forecast for a net loss of 55 billion yen (8 million).

Hitachi, which makes everything from vacuum cleaners to nuclear energy plants, posted a net loss of 78.1 billion yen (5 million) for the six months ended Sept. 30, in line with analyst estimates after the company cut its first-half and annual forecasts last month.

The result compared with a 10.9 billion yen shortfall a year ago.

Hitachi projects mounting losses for the year to March on slumped hard disk drive sales, cost overruns at its U.S. coal-fired thermal power plant and repairs of Hitachi-designed turbines that caused shut downs at nuclear power generators at two Japanese utility companies.

The utility firms said last week they might seek compensation from Hitachi for lost revenues and increased costs due to the shut downs.

Hitachi shares tumbled 17 percent in the April to September period, while the Tokyo market's electrical machinery index fell 4.38 percent.

REUTERS