Japan's largest electronics firm, Hitachi, has staunched the losses in its hard-disk division (HDD) by about 75 percent and announced profitable third-quarter financials.
Hitachi said its net profit was US$23.7 million, in contrast to a marginal loss in the previous year's corresponding period. The improvement in its hard-disk drive losses was aided by its acquisition of a major chunk of IBM's disk-drive operations.
'We had originally forecast an annual operating loss of [about US$400 million] for the HDD business,' said Hitachi's executive vice president Yoshiki Yagi in a statement. 'But thanks to restructuring efforts, the annual loss is now expected to come in around US$103.4 million.'
After acquiring IBM's HDD operation a year ago for US$2 billion, Hitachi said it was earmarking the business for a drive into computer and video recorder storage applications.
Overall, the firm said its turnaround was fuelled largely by growth and improvements in its semiconductor and digital media product units in IT and consumer segments. Yagi cited mobile phones and LCD and plasma display panels as doing particularly well.
Hitachi said it expects the improving picture to continue, noting that it is helped by a US economic rebound.
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