Hitachi has reported a record annual loss for a Japanese manufacturer, after demand for its products fell and announced a net loss of 787.3bn yen (US $8.1 Billion).

In January, Hitachi said it planned to cut up to 7,000 jobs globally because of a big fall in sales. At the time it also said that it expected to make a loss of 700bn yen.

But last week the firm said losses would be bigger than its earlier estimate because of writedowns on some of its assets. "The global economy is not expected to see a fully-fledged recovery until 2010 at the earliest," Hitachi said in a statement.

"The global economic outlook is being shaped by concerns about the US and other industrialised nations slipping into negative economic growth, and about slowing economic growth in emerging economies and the yen's appreciation."  

Shares in Hitachi fell 5.2% to 381 yen ahead of the results. Hitachi has already said it plans to cut costs of about 490bn yen.