Hitachi braces for record loss

Japanese tech giant becomes latest in a string of companies hit by global downturn.

    Hitachi  said ripple effects from the US financial crisis had hit sales around the world [EPA]

    The firm has already announced it will slash 7,000 jobs, or nearly 2 per cent of its global work force.

    Hitachi, which makes a wide range of products from computer chips to electric power systems said sales in all regions had fallen by an average by about 20 per cent.

    'Lehman shock'

    It blamed the US financial crisis for causing ripple effects throughout the world economy, squeezing demand not only in industrialised nations but also in China and other new markets.

    "Our business conditions are increasingly murky as the fallout on financial markets from 'Lehman shock' fails to settle down, and the economies of the US and emerging nations rapidly deteriorate," the company said, referring to the collapse of US investment bank Lehman Brothers last year.

    Last week rival electronics giant Sony said its profit had shrivelled by 95 per cent to $115.6m in the third quarter.

    It is predicting a loss of around $180m for the full fiscal year, it's first in more than a decade, largely because of huge losses in its core electronics sector.

    Also last week, Toshiba Corp. reported a net loss of $1.34bn for the October-December quarter, on the back of falling demand for flash memory chips and other gadgets.

    It expects a net loss of $3.1bn for the fiscal year.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    How different voting systems work around the world

    How different voting systems work around the world

    Nearly two billion voters in 52 countries around the world will head to the polls this year to elect their leaders.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    The great plunder: Nepal's stolen treasures

    The great plunder: Nepal's stolen treasures

    How the art world's hunger for ancient artefacts is destroying a centuries-old culture. A journey across the Himalayas.