UPDATE 1-Hitachi hard drive unit projects strong 2010

* Hard drive unit operating profit at $217 mln in Jan-Mar

* Unit’s sales up 42 pct y/y to $1.46 billion in Jan-Mar

* Hard drive unit head very bullish on 2010 performance

* Adding capacity in measured fashion to meet demand
(Recasts on earnings outlook)

TOKYO, April 22 (BestGrowthStock) – Hitachi Ltd’s (6501.T: ) hard drive
business will continue to post strong financial results during
2010 and is adding production capacity to meet demand, the head
of the operations said on Thursday.

Hitachi Global Storage Technologies, which competes with
Seagate Technology (STX.O: ) and Western Digital Corp (WDC.N: ), said
it posted an operating profit of $217 million in January-March,
against a loss of $57 million in the same quarter a year earlier.

The unit’s quarterly revenues grew 42 percent from a year
earlier to $1.46 billion.

Steve Milligan, president and chief executive officer of
HGST, told a news conference he was “very bullish” about business
prospects for 2010.

Milligan said production was running at very high capacity
utilisation rates and that capacity was being increased in a
“measured fashion” to meet an anticipated growth in demand in the
second half of the year.

Earlier this month Seagate reported a better-than-expected
quarterly profit and said market demand was the highest it has
ever been as consumers and companies continue to snap up disk
drives to store movies, music and photos. [ID:nN20119666]

Investment Analysis

(Reporting by Nathan Layne; Editing by Edwina Gibbs)

UPDATE 1-Hitachi hard drive unit projects strong 2010