28 March 2011
-- Strengthening Structure for One-Stop Solutions to Support Entire IT Life Cycle --
Tokyo, Japan, March 28, 2011 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that two companies within its Information & Telecommunication Systems Company – Hitachi Electronics Services Co., Ltd. (“HES”) and Hitachi Information Systems, Ltd. (“Hitachi Joho”) – have agreed to merge effective October 1, 2011, and will be rebranded as “Hitachi Systems, Ltd.” (provisional name, “the new company”). By consolidating their management resources, the two companies will leverage their combined strengths to reinforce the structure for providing one-stop solutions to support the entire IT life cycle, ranging from consulting for systems installation to operation and maintenance.
The IT environment has undergone major changes in recent years, including the appearance of cloud computing and other new service platforms, as well as advances in network technologies. In addition, the IT systems needs of customers are diversifying as businesses globalize and business models become more complex.
To respond to these changes, Hitachi has been strengthening its information and telecommunication systems business, which is a core competency within Hitachi. The information and telecommunications sector is a key component of Hitachi’s Social Innovation Business, and this move also supports Hitachi’s focus on expanding its Social Innovation Business. In February 2010, Hitachi Software Engineering Co., Ltd. (“Hitachi Software”), Hitachi Systems & Services, Ltd. (“Hitachi Systems”), and Hitachi Joho were made wholly owned subsidiaries, and in October Hitachi Software and Hitachi Systems were merged to create Hitachi Solutions, Ltd. Through these measures, Hitachi has strengthened its business structure by concentrating management resources, to respond to changes in the IT environment and the diversification of customer needs. This merger of HES and Hitachi Joho is intended to further strengthen the information and telecommunication systems business.
HES has 320 domestic service sites, and the company is highly regarded for its high-quality IT management and maintenance services that are closely tied to customers in the field and platform business solutions, which utilize the company’s support capabilities. At the same time, Hitachi Joho has a wealth of experience and expertise in the proposal, design, and construction of operational systems, especially for local governments and the manufacturing and distributions industries. It also has a proven track record at the data centers it currently operates throughout Japan.
Through this merger, the new company will concentrate the management resources developed by both companies over their histories to strengthen the structure for providing one-stop solutions that are tailored to customers in all regions throughout Japan, and add value to Hitachi’s systems operation and maintenance services. The new company will also reinforce the foundation for the cloud computing business, primarily through the data center services business, while at the same time further expanding the domestic business that is backed by roughly 50 years of experience at both companies, and strengthening the global business by providing support to Japanese companies as they expand overseas.
1. Overview of the Merging Companies As of December 31, 2010
(1) Company | Hitachi Electronics Services Co., Ltd. | Hitachi Information Systems, Ltd. |
(2) Business | Integrated support services and solutions for info- and communication systems (Software Development, Information & Telecommunications Equipment Sales, System Operation & Maintenance) | ・System Operation ・System Integration ・Equipment & Supplies Sales |
(3) Established | October 1, 1962 | June 15, 1959 |
(4) Representative | Tsugio Momose, President and Chief Executive Officer | Iwao Hara, President and Chief Executive Officer |
(5) Capital stock | 6,000 million yen | 13,162 million yen |
(6) Employees | 8,204 (consolidated) | 7,704 (consolidated) |
(7) Fiscal year-end | March 31 | March 31 |
(8)Shareholder (Shareholding) | Hitachi, Ltd. (100%) | Hitachi, Ltd. (100%) |
2. Overview of Merged Company As of October 1, 2011 (Planned)
(1) Company | Hitachi Systems, Ltd. |
(2) Businesses | ・System Integration ・System Operation, Monitoring, Maintenance ・Network Service ・Information Equipment & Software Sales, Development |
(3) Representative | Naoya Takahashi, President and Chief Executive Officer |
(4) Capital stock | 19,162million yen (Planned) |
(5) Employees | Approx. 16,000 (consolidated) |
(6) Fiscal year-end | March 31 |
(7) Shareholder (Shareholding) | Hitachi, Ltd. (100%) |
Hitachi’s Information & Telecommunication Systems Company, which includes Hitachi Densa and Hitachi Joho, will also support the reconstruction efforts of customers that suffered damage from the recent earthquake in northeastern Japan through cloud computing and various other IT solutions.
About Hitachi, Ltd.
Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the “Social Innovation Business,” which includes information & telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company’s website at http://www.hitachi.com.
About Hitachi Electronics Services Co., Ltd.
Hitachi Electronics Services was established in 1962 as the company responsible for maintaining the Hitachi Group’s computers and information systems. Today, the company is a one-stop “integrated support services and solutions” company for the entire information systems life cycle, from planning and procurement to design and construction, installation, operation, and maintenance.
The Hitachi Electronics Services Group has approximately 8,200 employees, with 320 service sites throughout Japan and nine overseas. With a track record built up over half a century, particularly in operation and maintenance services, and an advanced infrastructure via Hitachi Solution Support Centers, the Group provides customers with optimal solutions in addition to 24-hour, 365-day protection for their information systems. For more information on Hitachi Electronics Services, please visit the company's website at http://www.hitachi-densa.co.jp/english
About Hitachi Information Systems, Ltd.
Hitachi Information Systems is a leading provider of integrated IT services to various industries, including systems integration using a wide range of enterprise packages, network services to support those systems, and system operations via a nationwide network of data centers. Using its industry specialization and operational expertise developed over many years, the company develops and provides virtualization solutions, cloud computing, and other services that accurately address customers’ needs. The company is also pursuing global development, primarily through operations in Asia, to strengthen its support structure for customers’ global expansion. For more information on Hitachi Information Systems, please visit the company's website at http://www.hitachijoho.com/eng/company
Contacts
Japan
Yuko Futagami
Hitachi, Ltd.
+81-3-5208-9323
Yuko.futagami.ru@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
28 March 2011
Tokyo, Japan, March 28, 2011 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced the following information regarding the effects on the Hitachi Group of the Earthquake off the Pacific Coast of Tohoku, which struck Northeastern Japan on March 11, and regarding the responses of Hitachi, as of March 28.
Hitachi expresses deep condolences for victims of the earthquake and sincerely hopes for the earliest possible recovery in all regions involved.
1. Established Headquarters for Recovery from Earthquake Damages
Hitachi has expanded the functions of the Hitachi Group Emergency Headquarters for Response to the Tohoku Earthquake, which was established at Hitachi, Ltd. immediately following the earthquake and established the Hitachi Group Headquarters for Recovery from Earthquake Damages (led by Hitachi, Ltd. President Hiroaki Nakanishi, tentative name) on March 23. In addition to responding to the needs of affected employees and their families and assisting in recovery efforts at the Fukushima Daiichi Nuclear Power Station of Tokyo Electric Power Co. (“TEPCO”), this Headquarters have been dispatching volunteers and providing essential supplies and housing to the affected regions. Specialized teams have been assembled in each field to propose and steadily execute production recovery plans, and to resume operations at damaged production bases as quickly as possible. Utilizing this Headquarters as its “control tower,” the Hitachi Group will maximize the efficiency of support and recovery operations, and will combine the capabilities of the entire Group to contribute to the fastest possible recovery in regions affected by the disaster.
2. Providing Support in Affected Regions
Up to now, the Hitachi Group has already decided to provide support with a total value of 600 million yen, including the provision of construction machinery, flat panel TVs, dry cell batteries, Disaster Victim Support System for local municipals with no charge and others to aid victims of the disaster and to assist in recovery efforts. The Group will continue to offer additional support quickly, in response to conditions in the affected areas.
3. Status of Employees
Hitachi will continue confirming the status of Hitachi Group employees and their families who have been affected by the disaster.
4. Initiatives to Restore Social Infrastructures
(A) Assistance at the Fukushima Daiichi Nuclear Power Station of TEPCO
The 24-hour Emergency Response Center for Nuclear Power was established at the Hitachi, Ltd. Head Office immediately after the earthquake struck on March 11. Devoting all available resources of the Hitachi Group, over 1,000 staff members are providing support and assistance where it is needed. In addition to dispatching engineers from Hitachi to work on joint teams formed in collaboration with TEPCO and the Japanese government, a work team comprising about 300 engineers and other workers has been formed, and up to now about 170 employees have been dispatched to the site, where they are concentrating every possible effort into recovering electricity within the power station, and assisting in the cooling of the nuclear reactor pressure vessels and pools for spent nuclear fuels. Hitachi will continue to fully cooperate with TEPCO and the Japanese government in efforts to improve the situation, for example through the procurement and technical support.
(B) Assistance in resolving the power supply shortage
Immediately after the earthquake on March 11, the Emergency Response Center for Thermal Power was established to provide support in resuming operations at damaged thermal power plants. Up to now, about 150 engineers have been dispatched to the power plant sites. In order to provide further support in resolving electric power supply shortages, Hitachi has been offering proposals in response to requests from various electric power companies.
(C) Recovery of information and telecommunication systems
Immediately following the earthquake, Hitachi dispatched support staffs from bases across the country to affected areas, and has made its efforts to recover customers’ systems. Hitachi has also established Damage Response Reception Center, which responds to inquiries from customers, and also provides maintenance services at special prices for products damaged in the disaster. To further assist in recovery efforts, Hitachi is providing cloud service, virtual server systems and Disaster Victim Support System to companies, local municipalities, and NPOs with no charge for specified periods of time.
(D) Recovery of Elevators and Escalators
Recovery of elevators and escalators has been completed, with the exception of buildings that were completely or partially destroyed, or cases where repairs have been delayed due to parts shortages or other unavoidable reasons.
(E) Status of Shipments for Automotive Components
All finished products for which shipments were suspended due to the effects of the earthquake have already been shipped. Production operations partially resumed on March 25, and both domestic and overseas shipments of these items have also begun.
5. Status of Production Bases
[Bases where recovery work is currently underway]
- Hitachi, Ltd. Power Systems Company, Hitachi Works (Hitachi-shi, Ibaraki Pref.)
- Hitachi, Ltd. Urban Planning and Development Systems Company, Mito Works (Hitachinaka-shi, Ibaraki Pref.)
- Hitachi Displays, Ltd., Mobara Works (Mobara-shi, Chiba Pref.)
[Bases with full/ partial operation]
- Hitachi Vehicle Energy, Ltd. (Hitachinaka-shi, Ibaraki Pref.)
- Hitachi, Ltd. Information & Control Systems Company, Omika Works (Hitachi-shi, Ibaraki Pref.)
- Hitachi Appliances, Inc., Taga Works (Hitachi-shi, Ibaraki Pref.)
- Hitachi Appliances, Inc., Tochigi Works (Tochigi-shi, Tochigi Pref.)
- Hitachi, Ltd. Information & Telecommunication Systems Company, Disk Array Systems Division (Odawara-shi, Kanagawa Pref.)
- Hitachi, Ltd. Information & Telecommunication Systems Company, Software Division (Yokohama-shi, Kanagawa Pref.)
- Hitachi, Ltd. Information & Telecommunication Systems Company, Telecommunications & Network Systems Division (Yokohama-shi, Kanagawa Pref.)
- Hitachi Automotive Systems, Ltd., Sawa Works (Hitachinaka-shi, Ibaraki Pref.)
- Hitachi Automotive Systems, Ltd., Fukushima Works (Date-gun, Fukushima Pref.)
Hitachi Maxell Ltd.’s Osaka Works (Ibaraki-shi, Osaka Pref.) is currently manufacturing dry cell batteries at full capacity, to provide support to affected regions.
* Disaster Victim Support System:
A system that provides support to operations undertaken by municipal governments in the event of an earthquake or other natural disaster. The system’s program is provided by the Local Authorities Systems Development Center (LASDEC).
About Hitachi, Ltd.
Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
30 March 2011
Tokyo, March 30, 2011 – Hitachi, Ltd. (NYSE: HIT / TSE: 6501, “Hitachi”), Mitsubishi Electric Corporation (TSE: 6503, “Mitsubishi Electric”) and Mitsubishi Heavy Industries, Ltd. (TSE: 7011, “MHI”) today announced that they have entered into a basic agreement calling for the three companies to consolidate their hydroelectric power generation system operations. Discussions toward this end have been under way since last year, as previously announced on July 5, 2010. Under the agreement, the three companies agreed to establish a preparatory company (the “Preparatory Company”) in May 2011 as a subsidiary of Hitachi and to transfer their hydroelectric power generation system operations to the Preparatory Company by way of simplified company split (the “Company Split”).
In the coming years, hydroelectric power generation is expected to attract continuous demand as a clean renewable energy contributing toward the realization of a low-carbon society. In Japan, while the number of projects in planning to build large-scale new plants has been decreasing, demand is expected to remain solid for renovation and preventive maintenance of existing power generation facilities and for upgrading of power generation capacity. In overseas markets, vigorous and sustained demand is anticipated in such countries as China, where large-scale electric power development projects leveraging that nation’s abundant water resources are in progress, as well as in Latin America and India. For Japanese manufacturers the business environment continues to be severe, however, due to competition against European manufacturers and expansion into overseas markets by Chinese manufacturers.
Against this backdrop, Hitachi, Mitsubishi Electric and MHI reached a common recognition that the most effective means to strengthen and expand related business would be to pool their respective operating resources and engage jointly in hydroelectric power generation system operations.
Outline of the Company Split
1. Split Method
Hitachi, Mitsubishi Electric and MHI will transfer their respective operations to the Preparatory Company by way of simplified company split.
2. Operations to be Transferred
Hitachi
- Marketing, installation and after-sale services pertaining to the water turbines, generators, and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
- Hydroelectric power generation systems engineering
- Development and design of core components (water turbines, generators and auxiliary controllers, etc.) of hydroelectric power generation systems
Mitsubishi Electric
- Marketing, installation and after-sale services pertaining to the water turbines, generators and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
- Hydroelectric power generation systems engineering
- Development and design of core components (generators and auxiliary controllers, etc.) of hydroelectric power generation systems
MHI
- Marketing, installation and after-sale services pertaining to the water turbines and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
- Hydroelectric power generation systems engineering
- Development and design of core components (water turbines, etc.) of hydroelectric power generation systems
Outline of Splitting Companies
Hitachi, Ltd.
- Scope of business: Development, manufacture and sales of products and provision of services across 11 segments: Information & Telecommunication Systems, Power Systems, Social Infrastructure & Industrial Systems, Electronic Systems & Equipment, Construction Machinery, High Functional Materials & Components, Automotive Systems, Components & Devices, Digital Media & Consumer Products, Financial Services, Others (consolidated)
- Establishment: February 1, 1920
- Headquarters: 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
- President: Hiroaki Nakanishi
- Capital (as of March 31, 2010): 408,810 million yen
- Shares (as of March 31, 2010): 4,518,132,365
- Stockholders’ equity (as of March 31, 2010): 1,284,658 million yen (consolidated)
- Total assets (as of March 31, 2010): 8,951,762 million yen (consolidated)
- Close of fiscal year: March 31
- Principal shareholders and their holdings (as of March 31, 2010):
The Master Trust Bank of Japan, Ltd. (Trust Account): 7.0%
Japan Trustee Services Bank, Ltd. (Trust Account): 5.8%
NATS CUMCO: 3.2%
Mitsubishi Electric Corporation
- Scope of business (consolidated): Development, production, marketing and servicing of energy and electric systems, industrial automation systems, information & communication systems, electronic devices, home appliances, etc.
- Establishment: January 15, 1921
- Headquarters: 2-7-3, Marunouchi, Chiyoda-ku, Tokyo
- President & CEO: Kenichiro Yamanishi
- Capital (as of March 31, 2010): 175,820 million yen
- Shares (as of March 31, 2010): 2,147,201,551
- Stockholders’ equity (as of March 31, 2010): 1,021,194 million yen (consolidated)
- Total assets (as of March 31, 2010): 3,215,094 million yen (consolidated)
- Close of fiscal year: March 31
- Principal shareholders and their holdings (as of March 31, 2010):
The Master Trust Bank of Japan, Ltd. (Trust Account): 8.9%
Japan Trustee Services Bank, Ltd. (Trust Account): 5.4%
State Street Bank and Trust Company: 4.9%
Mitsubishi Heavy Industries, Ltd.
- Scope of business: Manufacture, etc. in the fields of shipbuilding & ocean development, power systems, machinery & steel structures, aerospace, medium-lot manufactured machinery, etc.
- Establishment: January 11, 1950
- Headquarters: 16-5, Konan 2-chome, Minato-ku, Tokyo
- President: Hideaki Omiya
- Capital (as of March 31, 2010): 265,608 million yen
- Shares (as of March 31, 2010): 3,373,647,813
- Stockholders’ equity (as of March 31, 2010): 1,328,772 million yen (consolidated)
- Total assets (as of March 31, 2010): 4,262,859 million yen (consolidated)
- Close of fiscal year: March 31
- Principal shareholders and their holdings (as of March 31, 2010):
Japan Trustee Services Bank, Ltd. (Trust Account): 4.6%
The Master Trust Bank of Japan, Ltd. (Trust Account): 3.9%
The Nomura Trust and Banking Co., Ltd. (holder in retirement benefit trust for The Bank of Tokyo-Mitsubishi UFJ, Ltd.): 3.7%
Outline of the Preparatory Company
Name: HM Hydro, Ltd. (subject to change)
Headquarters: Tokyo
Establishment: May 2011
Representative: To be announced
Scope of business: Marketing, plant engineering, installation and after-sale servicing of hydropower generation systems; development and design of core components (water turbines, generators, etc.) of hydropower generation systems
Capital: 200 million yen
Equity distribution: Hitachi 98%, Mitsubishi Electric 1%, MHI 1%
Note: The capital and equity distribution data presented above refer to the planned status at the time of company establishment in May 2011. Changes are planned to take effect from October 1, 2011.
Schedule of the Company Split
Date of approval of company split agreement: July 2011
Date of signing of company split agreement: July 2011
Effective date: October 1, 2011
Note: The Company Split is deemed to be a simplified company split pursuant to Article 784, Paragraph 3 of the Companies Act of Japan. Therefore, Hitachi, Mitsubishi Electric and MHI do not plan to convene shareholders’ meetings to seek approval for the company split agreement.
Further details concerning the Company Split will be announced once they have been determined. The impact of the Company Split on the business results of Hitachi, Mitsubishi Electric and MHI is expected to be negligible.
PRESS CONTACT
Hitachi, Ltd.
Japan
Yuichi Izumisawa
Hitachi, Ltd.
Tel: +81-3-5208-9324
yuichi.izumisawa.by@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
Tel: +1-914-333-2987
Masayuki.Takeuchi@hal.hitachi.com
Mitsubishi Electric Corporation
Public Relations Division
Tel: +81-3-3218-3380
prd.gnews@nk.MitsubishiElectric.co.jp
http://www.MitsubishiElectric.com/news/
Mitsubishi Heavy Industries, Ltd.
Hideo Ikuno
h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277, Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
6 April 2011
Tokyo, April 6, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it decided on a plan for the year-end dividend for fiscal year ended March 31, 2011 as follows. The record date for this dividend is March 31, 2011.
On March 17, Hitachi announced that it would decide on the year-end dividend for the fiscal year ended March 31, 2011 after conducting a detailed investigation of the impact on Hitachi’s business performance resulting from the Great East Japan Earthquake. The forecast for the year-end dividend before the announcement was 3 yen per share. Having obtained a certain level of projection on the status of excess capital, Hitachi has decided the plan to pay year-end dividend in the amount of 3 yen per share. This year-end dividend is scheduled to be finally authorized at the meeting of the Board of Directors to be held in May 2011.
The Year-End Dividend
Fiscal Year Ended March 31, 2011 | |
Record Date | March 31, 2011 |
Amount | 3 yen per share |
Aggregate Amount | 13,553 million yen*1 |
Effective Date (planned) | May 31, 2011 |
*1 The calculation of the aggregate amount of the year-end dividend is based on 4,517,723,961 shares, which deducted 2,421,003 shares of treasury stock from total issued shares of 4,520,144,964 shares as of March 31, 2011.
(Reference)
Interim Dividend | Year-End Dividend | Annual Dividend | |
Fiscal Year Ended March 31, 2010 | 0 yen per share | 0 yen per share | 0 yen per share |
Fiscal Year Ended March 31, 2011 | 5 yen per share*2 | 3 yen per share | 8 yen per share |
*2 The amount consists of ordinary dividend of 3 yen per share and commemorative dividend of 2 yen per share for Hitachi’s centennial anniversary.
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:
- economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
- exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
- uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
- uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
- the potential for significant losses on Hitachi’s investments in equity method affiliates;
- increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
- uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
- rapid technological innovation;
- the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
- fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins and shortages of materials, parts and components;
- fluctuations in product demand and industry capacity;
- uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials and shortages of materials, parts and components;
- uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
- uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
- general socio-economic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
- uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
- uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
- uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
- the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
- the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
- uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
- uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
- uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
6 April 2011
Tokyo, Japan, April 6, 2011 – Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced the following information regarding the effects on the Hitachi Group of the Great East Japan Earthquake on March 11, and regarding the responses of Hitachi, as of April 6.
Hitachi expresses deep condolences for victims of the earthquake and sincerely hopes for the earliest possible recovery in all regions involved.
Utilizing the Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment (led by Hitachi, Ltd. President Hiroaki Nakanishi) as its control tower, Hitachi is combining all of the Group’s resources in promoting the following activities aimed at achieving the fastest possible recovery in its damaged bases of operation.
1. Providing Support in Affected Regions
Up to now, the Hitachi Group has already decided to provide support with a total value of 750 million yen, including the provision of flat panel TVs, dry cell batteries, and Disaster Victim Support Systems* for local municipalities with no charge and others to aid victims of the disaster and to assist in recovery efforts. The Group will continue to offer additional support quickly, in response to conditions in the affected areas.
* Disaster Victim Support System: A system that provides support to operations undertaken by municipal governments in the event of an earthquake or other natural disaster. The system’s program is provided by the Local Authorities Systems Development Center (LASDEC).
2. Status of Employees
Hitachi will continue confirming the status of Hitachi Group employees and their families who have been affected by the disaster.
3. Assistance at the Fukushima Daiichi Nuclear Power Station of TEPCO
The 24-hour Emergency Response Center for Nuclear Power was established at the Hitachi, Ltd. Head Office immediately after the earthquake struck on March 11. In addition to dispatching engineers from Hitachi to work on joint teams formed in collaboration with The Tokyo Electric Power Company, Inc. (TEPCO) and the Japanese government, a work team comprising about 370 engineers and other workers has been formed, and up to now about 300 employees have been dispatched to the site, where they are concentrating every possible effort into recovering electricity within the power station, assisting in the cooling of the nuclear reactor pressure vessels and pools for spent nuclear fuels, and draining the water out from turbine buildings and tunnels. Also, over 1,000 staff members within the Hitachi Group are providing support and assistance where it is needed, collaborating with General Electric Co., a partner of nuclear power systems business. Devoting all available resources of the Hitachi Group, Hitachi will continue to fully cooperate with TEPCO and the Japanese government in efforts to improve the situation, for example through technical support and procurement.
4. Assistance in resolving the power supply shortage
Immediately after the earthquake on March 11, the Emergency Response Center for Thermal Power was established at Hitachi, Ltd. to provide support in resuming operations at damaged thermal power plants. Up to now, about 300 engineers have been dispatched to the power plant sites. Hitachi continues to offer proposals for new- and additional-installation of power-generating equipment, such as turbines, in response to requests from various electric power companies. Additionally, in order to prepare and resolve the electric power supply shortages, Hitachi operationalized its privately-owned electrical power facility to be able to respond to requests from power companies.
5. Status of Recovery at Business and Production Bases
Recovery operations are currently underway at the Group’s main production bases. At this time, main production bases are either partially or fully operational.
In the Power Systems business, on March 29, production resumed with the exception of some production line at the Hitachi, Ltd. Power Systems Company, Hitachi Works (Hitachi-shi, Ibaraki Pref.), where mainly manufactures turbines and power generators. For gas and steam turbines for domestic and overseas customers, production resumed and recovered 90 percent of its production capacity in comparison with the capacity before the earthquake. Aiming to operate with full capacity at the end of April 2011, Hitachi is running an accuracy test for its production lines. In the Information & Telecommunication Systems business, support staff have been dispatched from Hitachi bases across the country to affected regions, where they continue their efforts to recover customers’ systems.
In the Elevators and Escalators business, escalators and printed circuit board for escalators and elevators production partially resumed at the Hitachi, Ltd. Urban Planning and Development Systems Company, Mito Works (Hitachinaka-shi, Ibaraki Pref.). Hitachi is accelerating its initiatives to recover its full-scale production.
At manufacturing bases for automotive components where production had been temporarily suspended due to the effects of the earthquake, production operations partially resumed at Hitachi Automotive Systems, Ltd., Sawa Works (Hitachinaka-shi, Ibaraki Pref.) and Fukushima Works (Date-gun, Fukushima Pref.) on March 25, and both domestic and overseas shipments have begun. Hitachi also recovered most of its production lines in the week of March 28. Hitachi will continue to resume production on an increasing number of components, and to invest all its energies into ensuring a stable supply of products.
About Hitachi, Ltd.
Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
12 April 2011
Tokyo, April 12, 2011 - - - - - Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it has established the “Fukushima Nuclear Power Stations Project Division”(Tentative name), effective today, to reinforce its support structure for the Fukushima Nuclear Power Stations of The Tokyo Electric Power Company, Inc. (TEPCO). With the new system, which will be directly supervised by the President, Hitachi is determined to reinforce the support structure for the Japanese government and TEPCO. Akira Maru, Senior Officer for Nuclear Power Plant Business, will serve as General Manager of the new division.
In addition that Hitachi has dispatched engineers to the joint teams formed in collaboration with the Japanese government and TEPCO with the 24-hour Emergency Response Center for Nuclear Power that Hitachi established on March 11, 2011, immediately after the earthquake struck, a work team comprising about 370 engineers and other workers has been formed, and about 350 employees have been dispatched to the site, where they are concentrating every possible effort into recovering electricity within the power station, assisting in cooling the nuclear reactor pressure vessels and pools for spent fuels, draining the water from the turbine buildings and trenches, offering new and additional installations of power-generating equipment, and installing a nitrogen-injection system for the containment vessels and a contaminated water treatment system. Hitachi also collaborates with General Electric Company (GE), a partner of nuclear power business. More than 1,000 staff members, mainly from Hitachi-GE Nuclear Energy, Ltd. (“Hitachi-GE”), and GE-Hitachi Nuclear Energy Holdings LLC (“GE-Hitachi”), are providing support and assistance where it is needed.
With the newly established "Fukushima Nuclear Power Stations Project Division"(Tentative name) as Hitachi’s central organ of support efforts, Hitachi launched a new joint Japanese and U.S. expert team that consists of resources from Hitachi, Hitachi-GE, GE-Hitachi, Hitachi Power Systems America("HPSA"), some major U.S. electric utility and engineering company. Hitachi-GE and GE-Hitachi are operating the nuclear power business under the partnership between Hitachi and GE. HPSA is controlling the power business of Hitachi Group in the United States.
The major U.S. electric utility and engineering company, which have become our new partners, have ample experience in restoration measures from the nuclear emergency that occurred at the Three Mile Island nuclear power plant in the United States and the accident that occurred at the nuclear power station in Chernobyl, Ukraine. Harnessing the considerable experience of these partners’ professional teams, Hitachi will strengthen the continued short-term countermeasures to cool down the nuclear reactors, prevent the contamination from expanding and restore the functions of the pools for spent fuels, etc. Hitachi will also formulate a wide range of medium- to long-term disaster countermeasure plans and put them into practice in cooperation with these partners and propose the best plans to the Japanese government and TEPCO. Such medium- to long-term plans are about the handling of nuclear fuel, removing contamination from nuclear plants, treating and disposing of waste, maintaining the plants in the medium term and proceeding with final decommissioning.
As a crucial part of the joint Japanese and U.S. expert team, Hitachi continues to fully cooperate with the Japanese government and TEPCO in effort to improve the situation at the Fukushima Nuclear Power Stations.
About Hitachi’s cooperative relationship with General Electric Company ("GE") of the United States in the nuclear power field Hitachi and GE established joint venture companies in 2007 to construct, maintain, and provide related services for nuclear power plants and are proactively pursuing international business activities. The Japan-based joint venture, Hitachi-GE Nuclear Energy is roughly 80% owned by Hitachi and 20% owned by GE, and the United States-based joint venture, GE-Hitachi Nuclear Energy is 60% owned by GE and 40% owned by Hitachi.
About Hitachi, Ltd.
Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the “Social Innovation Business,” which includes information & telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company’s website at http://www.hitachi.com.
Contacts
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
---Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.---
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
25 April 2011
Tokyo, April 25, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced director candidates in accordance with a decision taken at a meeting of Nominating Committee convened today, and is subject to approval at Hitachi’s Ordinary General Meeting of Shareholders in June 2011.
1. Director Candidates <Proposed at Hitachi’s Ordinary General Meeting of Shareholders in June 2011> [* New]
<Chairman of the Board>
- Takashi Kawamura, currently Chairman of the Board
<Outside Director>
- Yoshie Ota, currently Outside Director
- Mitsuo Ohashi, currently Outside Director, Advisor of Showa Denko K.K.
- *Nobuo Katsumata, currently Chairman, Member of the Board of Marubeni Corporation
- Tohru Motobayashi, currently Outside Director, Lawyer, Partner, Ihara & Motobayashi
<Director>
- Isao Ono, currently Director, Chairman of the Board of Hitachi Solutions, Ltd.
- *Stephen Gomersall, currently Chairman of the Board of Hitachi Europe Ltd. (Group Chairman for Europe)
- Tadamichi Sakiyama, currently Director
- Masaharu Sumikawa, currently Director, Chairman of the Board of Hitachi Plant Technologies, Ltd.
- Hiroaki Nakanishi, currently Director, Representative Executive Officer and President
- Michiharu Nakamura, currently Director
- *Takashi Hatchoji, currently Deputy General Manager of Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment, Chairman of the Board of Hitachi America, Ltd. (Group Chairman for the Americas)
- Takashi Miyoshi, currently Director, Representative Executive Officer, Executive Vice President and Executive Officer
2. Resigning Directors
- Akihiko Nomiyama, currently Outside Director, Honorary Executive Consultant, JX Holdings, Inc.
- Kenji Miyahara, currently Outside Director, Honorary Advisor, Sumitomo Corporation
3. Biography of New Director Candidates
Nobuo Katsumata
1. Date of Birth | December 5, 1942 |
2. Education | |
March, 1966 | Graduated from the faculty of economics, Keio University |
3. Business Experience | |
April, 2008 | Chairman, Member of the Board of Marubeni Corporation |
April, 2003 | President & CEO, Member of the Board of Marubeni Corporation |
April, 2001 | Senior Vice President, Director of Marubeni Corporation |
April, 1999 | Corporate Vice President, Director of Marubeni Corporation |
June, 1996 | Director of Marubeni Corporation |
April, 1966 | Joined Marubeni-Iida Co., Ltd. (currently Marubeni Corporation) |
Stephen Gomersall
1. Date of Birth | January 17, 1948 |
2. Education | |
June, 1970 | Graduated from Stanford University, MA in International Studies |
May, 1969 | Graduated from Queens’ College Cambridge, BA in Modern Languages |
3. Business Experience | |
April, 2011 | Chairman of the Board of Hitachi Europe Ltd. (Group Chairman for Europe) |
October, 2006 | Senior Vice President and Executive Officer, Chief Executive for Europe, Chairman of the Board of Hitachi Europe Ltd. |
November, 2005 | Chief Executive for Europe, Chairman of the Board of Hitachi Europe Ltd. |
October, 2004 | Chief Executive for Europe of Hitachi, Ltd. |
July, 2004 | Retired Ambassador to Japan |
July, 1999 | Ambassador to Japan |
April, 1994 | Deputy Permanent Representative to the United Nations |
September, 1970 | Joined Foreign and Commonwealth Office, UK |
Takashi Hatchoji
1. Date of Birth | January 27, 1947 |
2. Education | |
March, 1970 | Graduated from the Department of Commerce, Hitotsubashi University |
3. Business Experience | |
April, 2011 | Deputy General Manager of Hitachi Group Headquarters for Post-earthquake Reconstruction and Redevelopment, Chairman of the Board of Hitachi America, Ltd. (Group Chairman for the Americas) |
April, 2009 | Representative Executive Officer, Executive Vice President and Executive Officer, General Manager of Supervisory Office for Business Infrastructure, Hitachi Group Chief Environmental Strategy Officer, General Manager of Supervisory Office for Product Environmental Information |
December, 2007 | President and Director of Hitachi Research Institute, Ltd., Hitachi Group Chief Environmental Strategy Officer of Hitachi, Ltd. |
June, 2007 | President and Director of Hitachi Research Institute, Ltd. |
April, 2007 | Director of Hitachi Research Institute, Ltd. |
April, 2006 | Representative Executive Officer, Executive Vice President and Executive Officer, General Manager of Compliance Division |
April, 2004 | Senior Vice President and Executive Officer, General Manager of Hitachi Group‐Legal and Corporate Communications, Hitachi Group Headquarters, Compliance Division and Invention Management Division |
June, 2003 | Vice President and Executive Officer, General Manager of Legal and Corporate Communications and Corporate Auditing |
April, 2003 | General Manager of Legal and Corporate Communications and Corporate Auditing |
April, 2002 | Chief Operating Officer and Chief Technology Officer of Information &Telecommunication Systems Group, General Manager of Business Solution Systems Division |
April, 2001 | General Manager of Business Solution Systems Division, System Solutions |
November, 1997 | General Manager of Corporate Planning & Development Office, Hitachi, Ltd., Executive Vice President of Hitachi Research Institute, Ltd. |
February 1995 | Department Manager of Business Development Department, Industrial Processing Division |
April, 1970 | Joined Hitachi, Ltd. |
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
27 April 2011
Hitachi and MHI Begin Specific Discussion on Supportive Measures for Fukushima Daiichi Nuclear Power Station
Tokyo, April 27, 2011 – Hitachi, Ltd. (TSE:6501/ NYSE:HIT) and Mitsubishi Heavy Industries, Ltd. (TSE:7011) today announced that they have begun discussions on sharing specific roles and defining actual procedures for jointly implementing measures to support recovery efforts at the Fukushima Daiichi Nuclear Power Station operated by Tokyo Electric Power Company, Incorporated (TEPCO).
Immediately after the March 11 earthquake, Hitachi established a 24-hour “Emergency Response Center for Nuclear Power” on March 11, immediately after the earthquake struck. Since then the company has dispatched approximately 500 engineers and other workers to the Fukushima site and is making every possible effort toward restoring electricity within the power plants. The company has also established a “Fukushima Project Supervisory Office,” and it has launched a joint team of Japanese and American experts in cooperation with U.S. utility firms and engineering companies. The team is now working to strengthen the short-tem measures currently in place and formulate medium- to long-term countermeasure plans.
Concurrent with these initiatives at Hitachi, MHI established an “Emergency Operation Center” and began providing support relating to the Fukushima Daiichi Nuclear Power Plant, including provision of emergency supplies such as radiation shields and conversion work on the Mega-Float to be used to store large volumes of contaminated water. The company has also proposed medium- and long-term plans that include a contaminated water treatment system, cooling system, and measures to enclose the plant buildings. Meanwhile, as a comprehensive heavy machinery manufacturer, MHI has been studying how to provide support in areas not directly involving nuclear power: for example, robots, special vehicles and aircraft.
Hitachi and MHI will discuss maximum utilization of their respective technologies and of the technologies of their respective partner companies in order to support the Japanese government and TEPCO in every way possible toward improving conditions at the Fukushima Daiichi Nuclear Power Station.
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated sales of 2,940.6 billion yen in fiscal 2009, the year ended March 31, 2010. MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.
For more information, please visit the MHI website (http://www.mhi.co.jp/en/index.html).
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
27 April 2011
Hitachi Announces Recognizing Extraordinary Item on an Unconsolidated Basis
Tokyo, April 27, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that the Company plans to post 52.9 billion yen in write-downs of subsidiaries and affiliated companies shares in line with a decline in market price or actual price as an extraordinary loss on an unconsolidated basis for the fiscal year ended March 31, 2011.
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.
27 April 2011
Tokyo, April 27, 2011 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced the Company’s consolidated business forecasts, as of April 27, 2011, for fiscal 2010, year ended March 31, 2011, in light of recent business performance.
1. Consolidated Business Forecasts for Fiscal 2010
(From April 1, 2010 to March 31, 2011) (Millions of yen)
Revenues | Operating Income | Income before income taxes | Net income | Net income attributable to Hitachi, Ltd. | |
Previous forecast (A) | 9,300,000 | 440,000 | 430,000 | 305,000 | 230,000 |
Revised forecast (B) | 9,310,000 | 440,000 | 430,000 | 300,000 | 230,000 |
(B)-(A) | 10,000 | 0 | 0 | (5,000) | 0 |
Fiscal 2009 ended March 31,2010 | 8,968,546 | 202,159 | 63,580 | (84,391) | (106,961) |
Differences From Previous Forecasts
Revenues and operating income for fiscal 2010 are projected to be largely in line with the previous business forecasts announced on February 3, 2011, despite damage to buildings and production facilities, as well as in-process products caused by the Great East Japan Earthquake. This is due to Group-wide efforts to restore production lines after the earthquake and the benefits of ongoing business structure reforms.
Net other deductions and income before income taxes are expected to be the same as previous forecasts due to a decline in exchange losses and other factors, offset by losses on fixed assets and a deterioration in equity in net (earnings) loss of affiliated companies resulting from the Great East Japan Earthquake.
Furthermore, net income attributable to Hitachi, Ltd. is projected to be in line with the previous forecast, with a decline in deductions of net income attributable to noncontrolling interests offsetting higher income taxes.
Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:
- economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
- exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
- uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
- uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
- the potential for significant losses on Hitachi’s investments in equity method affiliates;
- increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
- uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
- rapid technological innovation;
- the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
- fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins and shortages of materials, parts and components;
- fluctuations in product demand and industry capacity;
- uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials and shortages of materials, parts and components;
- uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
- uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
- general socio-economic and political conditions and the regulatory and trade environment of countries where Hitachi conducts business, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
- uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
- uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
- uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
- the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
- the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
- uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
- uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
- uncertainty as to Hitachi’s ability to attract and retain skilled personnel.
The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.
Contacts
Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com
U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com
Hitachi in Canada
At Hitachi, green and digital innovation drives our mission as climate change innovators. Converging operational and information technologies, Hitachi is addressing societal and environmental challenges, shaping a greener, brighter tomorrow for all.