March 9, 2012 / 4:06 AM / 8 years ago

Hitachi to book $2.4 billion profit on hard drive unit sale

TOKYO (Reuters) - Japan’s Hitachi Ltd, which is overhauling its sprawling business to improve profitability, said it would book a 191 billion yen ($2.4 billion) special profit on the sale of its U.S. hard disk drive business to Western Digital Corp.

The industrial electronics conglomerate, grouping some 900 firms making everything from household appliances to power plants, has been shedding money-losing businesses and shifting its focus to areas such as infrastructure that are expected to generate stable profits.

Hitachi reached an agreement to sell the hard-drive unit, Hitachi Global Storage Technologies, to Western Digital last year. It closed the deal on Thursday after obtaining U.S. regulatory approval.

Hitachi will book the extraordinary profit on a consolidated basis for the financial year ending March 31, the company said in a statement.

The company is checking how the special profit might impact its forecast for a net profit of 200 billion yen for the year to March 31, the statement said.

Hitachi shares were up 1.3 percent at 476 yen in midafternoon trade, little changed after the announcement, and compared with a 2.2 percent rise in the benchmark Nikkei average.

Reporting by Nobuhiro Kubo and Chris Gallagher; Editing by Neil Fullick

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