Japanese companies suffer a black Tuesday
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AP
Oluşturulma Tarihi: Mayıs 13, 2009 00:00
TOKYO - Four Japanese companies post huge losses for the year 2008, displaying the destructive effect of diminishing exports and a strengthening currency. Hitachi reports the biggest ever annual loss for a Japanese manufacturer, with $8.1 billion.
Four of Japan’s leading companies, from electronics giant Hitachi to automaker Mazda, reported record losses yesterday, displaying vividly how the global economic slowdown has hit Japan Inc.
Hitachi posted the biggest ever annual loss for a Japanese manufacturer ever, saying it doesn't expect the global economy to recover until next year at the earliest.
Hitachi, which produces everything from home appliances to medical equipment to nuclear power systems, said yesterday it lost 787.3 billion yen ($8.1 billion) for the fiscal year through March. That was far worse than last year's 58.1 billion yen loss and marks the company's third straight year in the red.
Annual revenue tumbled 11 percent to 10 trillion yen, and operating profit - which reflects its core business - plunged 63 percent to 127.1 billion yen.
Hitachi's result is the worst annual net loss for a Japanese manufacturer, according to Shinko Research Institute. It is the second-largest in Japanese corporate history after an 834.6 billion yen loss reported by telecommunications giant Nippon Telegraph and Telephone Corp. for the fiscal year ending March 2002.
The Tokyo-based company said virtually every area of its sprawling business was battered by the sharp global downturn. An appreciating yen, which erodes the value of overseas earnings, also hurt the bottom line.
Electronics giant NEC also said it fell into the red last fiscal year because of business restructuring costs and stock losses from the economic downturn. NEC said yesterday it recorded a group net loss of 297 billion yen ($3 billion) for the 12 months through March, down sharply from last year's net profit of 22.7 billion yen.
The company booked an operating loss of 6.2 billion yen ($63.7 million), compared to a profit of 156.8 billion a year earlier. Sales fell 8.7 percent to 4.2 trillion yen ($46.4 billion). For the latest quarter alone, NEC suffered a net loss of 168 billion yen ($1.7 billion), compared with a 32.7 billion yen profit from the previous year. Sales were down 20 percent to 1.14 trillion ($11.7 billion) during the January-March quarter.
Nissan posts big loss
Nissan Motor, Japan's No. 3 automaker, reported a 233.7 billion yen ($2.4 billion) annual net loss, its first such loss in a decade.
"We are beginning to see some signs of improved access to credit, the impact of government stimulus packages and a gradual return in consumer confidence," said Chief Executive Carlos Ghosn, while remaining cautious about the future.
"The crisis is ongoing and market conditions are still volatile," he told reporters at Nissan's Tokyo headquarters. It was the first time Nissan had sunk to an annual loss since Ghosn took the helm a decade ago under an alliance with Renault of France, and wrested Nissan out of near-bankruptcy.
For the January-March quarter, Nissan lost 276.89 billion yen ($2.8 billion). Chief Operating Officer Toshiyuki Shiga blamed the loss on three factors - the U.S. financial crisis, the global slowdown and the strong yen. The fiscal fourth quarter loss was larger than the annual loss because the automaker turned a profit in earlier quarters.
But Nissan projects a smaller loss of 170 billion yen for the fiscal year through March 2010, he said. Also yesterday, Mazda Motor, Japan's fifth biggest automaker, reported a 71.5 billion yen ($732.6 million) loss for the fiscal year.
Toyota Motor, the world's largest automaker, has fared worse, racking up a 436.9 billion yen annual loss, partly because of its size and its past success that had fueled an ambitious expansion drive. It projects an even bigger loss for this fiscal year. Honda Motor, by contrast, has done better, managing to stay in the black for the fiscal year with a 137 billion yen profit.
Hitachi posted the biggest ever annual loss for a Japanese manufacturer ever, saying it doesn't expect the global economy to recover until next year at the earliest.
Hitachi, which produces everything from home appliances to medical equipment to nuclear power systems, said yesterday it lost 787.3 billion yen ($8.1 billion) for the fiscal year through March. That was far worse than last year's 58.1 billion yen loss and marks the company's third straight year in the red.
Annual revenue tumbled 11 percent to 10 trillion yen, and operating profit - which reflects its core business - plunged 63 percent to 127.1 billion yen.
Hitachi's result is the worst annual net loss for a Japanese manufacturer, according to Shinko Research Institute. It is the second-largest in Japanese corporate history after an 834.6 billion yen loss reported by telecommunications giant Nippon Telegraph and Telephone Corp. for the fiscal year ending March 2002.
The Tokyo-based company said virtually every area of its sprawling business was battered by the sharp global downturn. An appreciating yen, which erodes the value of overseas earnings, also hurt the bottom line.
Electronics giant NEC also said it fell into the red last fiscal year because of business restructuring costs and stock losses from the economic downturn. NEC said yesterday it recorded a group net loss of 297 billion yen ($3 billion) for the 12 months through March, down sharply from last year's net profit of 22.7 billion yen.
The company booked an operating loss of 6.2 billion yen ($63.7 million), compared to a profit of 156.8 billion a year earlier. Sales fell 8.7 percent to 4.2 trillion yen ($46.4 billion). For the latest quarter alone, NEC suffered a net loss of 168 billion yen ($1.7 billion), compared with a 32.7 billion yen profit from the previous year. Sales were down 20 percent to 1.14 trillion ($11.7 billion) during the January-March quarter.
Nissan posts big loss
Nissan Motor, Japan's No. 3 automaker, reported a 233.7 billion yen ($2.4 billion) annual net loss, its first such loss in a decade.
"We are beginning to see some signs of improved access to credit, the impact of government stimulus packages and a gradual return in consumer confidence," said Chief Executive Carlos Ghosn, while remaining cautious about the future.
"The crisis is ongoing and market conditions are still volatile," he told reporters at Nissan's Tokyo headquarters. It was the first time Nissan had sunk to an annual loss since Ghosn took the helm a decade ago under an alliance with Renault of France, and wrested Nissan out of near-bankruptcy.
For the January-March quarter, Nissan lost 276.89 billion yen ($2.8 billion). Chief Operating Officer Toshiyuki Shiga blamed the loss on three factors - the U.S. financial crisis, the global slowdown and the strong yen. The fiscal fourth quarter loss was larger than the annual loss because the automaker turned a profit in earlier quarters.
But Nissan projects a smaller loss of 170 billion yen for the fiscal year through March 2010, he said. Also yesterday, Mazda Motor, Japan's fifth biggest automaker, reported a 71.5 billion yen ($732.6 million) loss for the fiscal year.
Toyota Motor, the world's largest automaker, has fared worse, racking up a 436.9 billion yen annual loss, partly because of its size and its past success that had fueled an ambitious expansion drive. It projects an even bigger loss for this fiscal year. Honda Motor, by contrast, has done better, managing to stay in the black for the fiscal year with a 137 billion yen profit.