TOKYO (Reuters) - Hitachi Maxell Ltd cut its annual operating profit forecast by 40 percent to 5.1 billion yen ($48 million) on Wednesday and said it would reduce headcount in its lithium ion battery business after high-end smartphone sales sagged.
The Japanese electronics maker, which supplies lithium ion batteries for Samsung Electronics Co Ltd's (KS:005930) smartphones, said it would offer voluntary retirement packages to 130 staff over 40-years old at the end of Feb 2015 and outsource an increased proportion of batteries after that.
Samsung's July-September profit was the lowest in more than three years and the company said in early October that short-term prospects for its smartphones remained uncertain, as its sales are undercut by Chinese makers at the low end of the market and squeezed at the high end by Apple Inc (O:AAPL).
Hitachi Maxell company left its net profit outlook at 6.75 billion yen and said it would pay a dividend of 31.5 yen for the first half after previously leaving the amount unclear. It also cut its full-year forecast by 7.8 percent to 154 billion yen.
The company's shares closed 2.2 percent higher at 1,726 yen, a level that was 16.6 percent lower than its offering price when it relisted in March. Hitachi Maxell was spun off from Hitachi Ltd (T:6501) after becoming a wholly-owned subsidiary in 2010.
Hitachi Maxell's share of the lithium ion battery market had dropped to 2.5 percent in 2013 from 4.4 percent in 2008, according to Japan-based market research firm Techno System Research.
(Reporting by Sophie Knight; Editing by Ryan Woo)