Hitachi warns profit will fall this year

Japanese high-tech firm Hitachi said Thursday it expects its group net profit in the financial year ending March 2012 to fall 16 percent on-year due the impact of the March 11 earthquake and tsunami. The company, which delayed its forecast to assess the impact of the disasters on its business, said it expects a profit of 200 billion yen ($2.5 billion) compared to a record 238.87 billion yen last year. Like many other Japanese firms Hitachi -- whose products range from microchips to nuclear reactors -- reported damage to its production facilities and power supply problems after the disasters and subsequent nuclear crisis and continues to face uncertainties over supplies of raw materials. All of the plants have since resumed operations, even though output capacity at some of them is still below pre-quake levels. However, it expects annual sales to rise by nearly two percent on-year to 9.5 trillion yen.