Hitachi slashes forecasts after its turnaround plan stumbles

 
City A.M. Reporter
HITACHI yesterday cut its full-year profit outlook by about 13 per cent to ¥420bn (£2.9bn), citing a weak economic recovery in Europe and a slowdown in emerging markets.

The sprawling Japanese firm, which is cutting costs and trying to push into growth areas such as infrastructure, posted a 28 per cent fall in its third-quarter operating profit, well below market forecasts for a small rise.

“The business environment facing our company is likely to stay unclear, including not only a prolonged European economic struggle but also a slowdown in growth in emerging markets, including China and India,” the firm said in a statement.

Japan’s biggest industrial electronics firm has been overhauling its empire of some 900 firms since reporting one of the largest losses in Japanese corporate history.