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Hitachi Stops Plans
By Admin | April 17, 2008
Japan’s Hitachi Ltd has given up on plans to sell a stake in its troubled computer disk drive business and aims to turn the business around by going after market share and cutting costs, the head of the unit said on Thursday.
Hitachi’s determination to go it alone comes two days after Seagate Technology’s outlook, hurt by price falls, missed expectations and sent its shares plummeting.
Capital expenditure at the unit, which Hitachi bought from IBM in 2002, was likely to be around 6 percent to 9 percent of sales this year while research and development would be about 10 percent of sales, he said.
Senior executives at parent Hitachi said this month that they would not be averse to resuming talks with private equity funds, once fears about the credit markets ease. The unit aimed to cut costs by roughly 13 percent, Nakanishi said. Hitachi Global Storage Technologies has not once posted an annual profit in the five years since Hitachi acquired it. All this seems to spell bad news for investors.
Topics: Other Tech News, Computer Hardware, World Computer News |