Hitachi has issued a profit warning for the first half of fiscal 2002, ending September 30, 2002. The company had expected to generate a Y5 billion profit for the period, but now anticipates it will only break even. Hitachi’s full year forecasts remained unchanged.
With respect to operating income, in the Power & Industrial Systems segment, Hitachi blamed a decrease in the profitability of major overseas orders of power equipment and other items and, in Japan, of waste processing plants. In addition, in the Digital Media & Consumer Products segment, Hitachi expects operating income to be depressed by sluggish sales of mobile phones and room air conditioners. In the Electronic Devices segment, although in the first quarter semiconductors and displays exceeded initial estimates, in the second quarter sales were affected by a softening of the market. Thus, segment-operating income is expected to be in line with the company’s initial projections.
With respect to other income and deductions, Hitachi expects the appreciation of the yen to give rise to currency exchange losses. As a result, the company revised its initial forecast for income before income taxes and minority interests and net income downward.