Hitachi Metals to final loss of 47.0 billion yen Impact of China's economic slowdown October 29, 20:31
A major metal manufacturer, Hitachi Metals, has revealed that the final profit and loss for the fiscal year ending March next year is expected to turn into a deficit of 47.0 billion yen. This is because demand for materials used in motors for electric vehicles and industrial robots has decreased due to the slowdown in the Chinese economy.
Hitachi Metals revised its earnings forecast for the fiscal year ending March 31, 2009 downward, on the announcement of the interim financial results on the 29th.
As a result, sales are expected to be 18.5% lower than the previous forecast at 895.0 billion yen, and the final profit / loss will be a deficit of 47.0 billion yen, reversing from the surplus forecast.
This is because the demand for materials for motors such as electric vehicles and industrial robots has declined significantly due to the slowdown in the Chinese economy, etc., and as a result of reviewing the profitability of this business, more than 42.5 billion yen was treated as a loss.
The net profit is in the red for the first time in 11 years since the financial year ended March 2009, when business performance deteriorated due to the Lehman shock.
The company recruits early retirement centered on managers, closes some manufacturing bases, temporarily returns employees, and returns part of executive compensation.
Mr. Koji Sato said, “I can't deny that the business assumptions were poor. I would like to make a selection and focus on the business areas where we can get a certain share, and re-establish.”