Hitachi hard drive unit preparing for U.S. IPO

TOKYO (BestGrowthStock) – Japan’s Hitachi Ltd (6501.T: ) said its hard disk drive unit is preparing to list shares in the United States as the electronics conglomerate distances itself from a volatile business that faces falling demand and prices.

Hitachi has been moving to streamline its sprawling operations and focus more on stable and growing infrastructure-related businesses such as power plants and industrial systems, aiming to better compete with Siemens (SIEGn.DE: ) and General Electric (GE.N: ).

Hitachi said on Tuesday that the hard disk drive unit, Hitachi Global Storage Technologies (HGST), plans to list shares on either the New York Stock Exchange or Nasdaq. Reuters first reported Hitachi’s IPO plan for the unit in August.

HGST has been hurt by weakening growth in PC-related sales as tablet computers and other new devices not equipped with hard disk drives surge in popularity.

Hitachi’s component device business, which includes hard drives, was the only segment for which the company cut its full-year profit outlook last week when it hiked its overall profit outlook by 21 percent, beyond market expectations.

HGST and its parent company will decide the timing of the initial public offering based on economic and market conditions, Hitachi said.

(Reporting by Sachi Izumi; Editing by Edmund Klamann)

Hitachi hard drive unit preparing for U.S. IPO