Hitachi: Will Book $2.4 Billion Profit On Hard Drive Unit Sale

Posted on Mar 9 2012 - 9:46am by Editorial Staff

Japanese multinational conglomerate Hitachi seems going to book a 191 billion yen (about $2.4 billion) special profit on the sale of its US hard disk drive business to Western Digital Corporation in an urge to overhaul its sprawling business to improve profitability, reports Reuters.

The industrial electronics conglomerate, grouping some 900 firms, has been a diversified company that has 11 business segments: Information and Telecommunication Systems, Electrical Systems, Social and Industrial Systems, Automotive Systems, Electronic Component Devices, Construction, and Financial services.

Hitachi reached an agreement to sell the hard-drive unit, Hitachi Global Storage Technologies, to Western Digital last year. The company is shifting its focus to areas such as infrastructure that are expected to generate stable profits. It closed the deal on Thursday after obtaining U.S. regulatory approval.

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