Electronics makers awash in red ink

Kyodo News

Hitachi, NEC and other major electronics companies announced first-half losses for fiscal 2009 on Thursday.

Hitachi Ltd. said it logged a group net loss of ¥133.22 billion in the half-year period, compared with a net profit of ¥14.19 billion for the same period a year ago.

Hitachi also booked an operating loss of ¥24.76 billion on sales of ¥4.12 trillion, down 22.3 percent.

Last year, Hitachi posted a group operating profit of ¥197.08 billion on sales of ¥5.31 trillion.

The company said it projects a net loss of ¥230 billion and an operating profit of ¥80 billion on sales of ¥8.7 trillion for the full business year through next March.

Meanwhile, NEC Corp. announced a group net loss of ¥43.59 billion for the April to September period, reversing its ¥1.76 billion group net profit from the previous year.

In its consolidated earnings report for the first half of 2009, the electronics giant said it booked an operating loss of ¥37.70 billion, down from ¥13.39 billion a year before, on sales of ¥1.65 trillion, down 22.3 percent.

For the full year, NEC lowered its projection to a group operating profit of ¥60 billion on sales of ¥3.66 trillion, compared with ¥100 billion on sales of ¥3.73 trillion.

Two Osaka-based companies also logged net losses for the first half of fiscal 2009.

Sharp Corp. said it posted a group net loss of ¥17.72 billion, compared with a net profit of ¥28.01 billion a year earlier.

In its consolidated earnings report, Sharp posted a group operating profit of ¥1.57 billion, down 96.9 percent, on sales of ¥1.29 trillion, down 17.5 percent.

Sanyo Electric Co. incurred a group net loss of ¥37.36 billion in the half-year period, reversing its ¥32.65 billion group net profit from the previous year.

Group operating profit plunged 86.0 percent to ¥3.35 billion on sales of ¥784.00 billion, down 22.1 percent, due to weak personal consumption and a drop in capital investment, Sanyo said.