Hitachi Ltd., the nation's largest heavy electronics maker, said its net loss in the three months to June more than trebled from a year ago to 38.4 billion yen (320 million dollars).

Its recurring loss widened to 30.9 billion yen from 5.2 billion yen previously, while revenue inched up only 1.6 percent to 1.9 trillion yen.

"During the quarter, consumption and production were slow in Asia, particularly China, due to the effects of Severe Acute Respiratory Syndrome (SARS)," the technology giant said in a statement.

Sluggish economic activity in the United States as well as reduced capital investment by companies at home also weighed on Hitachi's bottom line.

Revenue from electronic devices plunged 26 percent over the period following a decision to spin-off most of its semiconductor business into a joint venture -- Renesas Technology Corp. -- with Mitsubishi Electric Corp., which opened for business on April 1.

"The latest reorganisation ... pushed up sales, general and administration costs," said Yoshiki Yagi, executive vice-president at Hitachi.

Rival NEC Corp. also had a bad three months due to sluggish demand and the absence of major profits from stock sales that boosted earnings last year.

Its net profit in April-June plunged 90.3 percent to 700 million yen and pre-tax profit sank 50.2 percent to 9.8 billion yen.

In contrast, the fruits of a restructuring drive transformed NEC's operating profit to 12 billion yen from a loss last year of seven billion yen, while sales edged up 0.9 percent to 1.03 trillion yen.

"We realised cost savings of 74 billion yen although there was a negative impact of 64 billion yen from a drop in prices," NEC senior managing director Shigeo Matsumoto told reporters.

He remained gloomy about the outlook for the technology industry.

"We are not able to say we can clearly see (bright) signs," he admitted.

Number-three electronics manufacturer Mitsubishi Electric was similarly cautious after announcing its net profit fell 23.2 percent in the June quarter from a year ago to 658 million yen.

On the other hand, pre-tax profit surged almost nine-fold to 8.3 billion yen, while sales inched up two percent to 740.2 billion yen.

"In the first quarter of the financial year ... the global economy on the whole slowed down, especially in the United states and Europe," it said in a statement. "Consequently, the business environment facing the company continues to be severe."

Despite the weak results, Hitachi and NEC raised their first half forecasts but maintained their estimates for the full year to March 2004.

For the six months to September, Hitachi sees a net profit of 30 billion yen, unchanged from previously, but its pre-tax profit was upgraded from zero to 50 billion yen and revenue raised to four trillion yen from 3.85 trillion.

NEC projected a first half net profit of 12 billion yen -- up nine billion yen from a prior estimate -- with pre-tax profit seen at 65 billion yen, up 30 billion yen. Revenue was left unchanged at 2.2 trillion yen.

In contrast, Mitsubishi Electric kept its April-September forecast and declined to say if the full year projection would be changed.

For the six months to September, the company predicted zero net profit and pre-tax profit of five billion yen on revenue of 1.5 trillion yen.

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