Hitachi Zosen to Cut Outlook on Settlement with U.S. Firm

Economy

Osaka, Oct. 4 (Jiji Press)--Hitachi Zosen Corp. <7004> said Friday it has lowered its consolidated net profit projection for the year ending in March 2020 from 5 billion yen to one billion yen due to settlement payments to a U.S. construction firm.

The Japanese heavy machinery maker said it will book a special loss of some 7 billion yen due to payments to settle a lawsuit that the U.S. company filed in 2016, seeking damages after an excavator that Hitachi Zosen supplied halted during tunnel construction.

Hitachi Zosen agreed to pay 5 million dollars and repair costs to settle the lawsuit, the company said.

[EARNINGS]

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