STOCKHOLM (03/13/2000) - Computer and electronics manufacturer Hitachi Ltd. late last week lowered profit expectations for its fiscal year 1999, citing lower than expected sales of mainframe computers as a main reason for the shortfall.
Hitachi now expects to report consolidated net income of 10 billion [B] yen (US$95 million [M]) for its fiscal year 1999, ending March 31, 2000, down from a previous forecast of 35 billion [B] yen. Revenue, meanwhile, is still expected to reach 7.8 trillion [T] yen, in line with the Tokyo-based company's earlier predictions.
Operating income during the year took a hit from lower-than-expected mainframe sales, Hitachi said in a statement.
Although lower than expected, the 1999 profit will still mark a sharp turnaround from fiscal 1998, when Hitachi posted a record 339 billion [B] yen loss. [See "Hitachi Records First Postwar Loss," May 27, 1999.]The consolidated results include Hitachi's own operations as well as those of its subsidiaries and affiliates.
Hitachi, in Tokyo, can be reached at +81-3-3258-1111 or on the Web at http://www.hitachi.com/.