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International Business News
Hitachi posts record $8.1 b annual loss
AP, Tokyo
For Japanese electronics makers, the last fiscal year was one they'd like to forget Especially Hitachi, which on TUcsday set the wrong kind of record.
It posted the biggest ever annual loss by a Japanese manufacturer, and warning of more red ink, said it does n't expect the global economy to recover until next year at the earliest.
Rival NEC Corp, also booked big losses for the 12 months through March but vowed to return to profitabil ity as soon as this year.
Hitachi, which produces everything from home appliances to medical equipment to nuclear reactors, said Tuesday it lost 787.3 billion yen ($8.1 billion) for the fiscal year through March. That was far worse than last year's 58.1 billion yen loss and marks the company's third straight year in the red.
Annual revenue tumbled 11 percent to 10 trillion yen, and operating profit - which reflects its core business -plunged 63 percent to 127.1 billion yen.
Hitachi's result is the worst annual net loss for a Japanese manufacturer, according to Shinko Research Institute Co. It is the second-largest in Japanese corporate history' after an 834.6 billion yen loss reported by telecommunications giant Nippon Telegraph and Telephone Corp, for the fiscal year ending March 2002.
Australia budgets $16.7b for infrastructure
AFP, Canberra
Australia on TUesday unveiled a sweeping 22-billion-dollar (16.7 billion US) infrastructure-building plan in its annual budget aimed at saving more than 200,000 jobs amid a "brutal" global downturn.
Handing down Australia's first recessionary budget in almost two decades, Treasurer Wayne Swan launched what he called an "unprecedented push for jobs and productivity" as the nation battles to climb out of a cripplingrecession.
Swan said the infrastructure spending came on top of stimulus packages worth more than 50 billion dollars rolled out over the past six months and would help put Australia in a far better position than many other advanced economies to deal with the downturn.
"The global recession has been unleashed on Australia with a brutal, uncompromising force,” Swan told parliament in his budget speech.
"Our actions are expected to support up to 210,000 jobs and reduce the peak in the unemployment rate by 1.5 percentage points below the double-digit peak it would reach if we listened to those who said we should do nothing."
Swan said the government would commit 22 billion dollars to improving transport, communications, energy, education and health infrastructure - on top of the stimulus packages already announced.
Tourist cancellations in
Mexico closes 25 hotels
AFP, Cancun, Mexico
Cancellations from tourists giving up travel plans to Mexico over swine flu fears, have forced 25 hotels in and around the popular coastal resort of Cancun to close, local officials said.
The affected hotels in Cancun, Playa del Carmen and Cozumel accounted for some 12,000 rooms, Quitana Roo state governor Felix Gonzalez told local radio on Monday.
In Cancun itself, nine out of 144 hotels were closed, according to tourism officials.
Cancun's hotel occupancy has fallen to 20 percent in the third week of alert for the influenza A(H1N1) epidemic, said the president of the local hotel association.
The A(H1N1) flu virus, which has spread worldwide, has killed 56 people in Mexico, the epicenter of the epidemic.
Health Minister Jose Angel Cordova has said the number of recorded cases is dropping off after a peak on April 26, but 2,059 infections have now appeared in 29 of the country's 32 states.
Philippines claims worst of crisis is over
AFP, Maclan. Philippines
A senior official at the economic planning ministry said Tuesday "the worst is over for the Philippines economy" as it battles the global economic downturn.
"The crisis is not over, but the worst is over for the Philippine economy," Economic Planning Undersecretary Rolando TUngpaJan told a cabinet meeting led by President Gloria Arroyo in this central city.
He insisted cash transfers by the large Filipino labour force based abroad would grow this year instead of contracting, while subsiding inflation augured well for consumer spending for the rest of2009.
Consumer price inflation slowed to 4.8 percent in April, down from 6.4 percent in March. The easing inflation has led analysts to predict the central bank will cut interest rales.