TOKYO--(Business Wire)--
Hitachi, Ltd. (NYSE:HIT)(TOKYO:6501) today announced revisions to the Company`s
consolidated business forecasts for fiscal 2008, the year ended March 31, 2009,
which were announced on February 3, 2009, due to recent business performance.
The Company also announced plans to record extraordinary items on an
unconsolidated basis. Details are as follows.
1. Revisions of Consolidated Business Forecasts for Fiscal 2008
(From April 1, 2008 to March 31, 2009) (Millions of yen)
Revenues Operating Income (loss) Income (loss) Net income
income before income before
(loss)
taxes and minority
minority interests
interests
Previous forecast (A) 10,020,000 40,000 (380,000 ) (710,000 ) (700,000 )
Revised forecast (B) 10,000,000 127,000 (290,000 ) (795,000 ) (788,000 )
(B)-(A) (20,000 ) 87,000 90,000 (85,000 ) (88,000 )
% change (0.2 ) 217.5 - - -
Fiscal 2007 11,226,735 345,516 324,782 52,619 (58,125 )
Ended March 31, 2008
Rationales
Fiscal 2008 operating income is expected to be better than the forecast issued
on February 3, 2009 (hereinafter "previous forecast") by 87.0 billion yen, due
to improved performances, mainly in High Functional Materials & Components and
Power & Industrial Systems segments. As a result, Hitachi expects income before
income taxes and minority interests to be better than previously forecasted by
90.0 billion yen.
However, the Company anticipates that the global economic downturn will continue
in 2009 and don`t expect a full recovery until 2010. For this reason, Hitachi
has decided to completely write off deferred tax assets at companies subject to
consolidated taxation, including the Company, corresponding to the increasing
tax cost for fiscal 2009 and subsequent fiscal years. Accordingly, the Company
anticipates that income taxes will be more than the previous forecast by 175.0
billion yen. And as a result, net loss is expected to be lower than the previous
forecast by 88.0 billion yen.
2. Revisions of Consolidated Business Forecasts for Fiscal 2008 by Industry Segment
(1) Revenues by Industry Segment (Billions of yen)
Previous forecast (A) Revised forecast (B) ((B)-(A)) Fiscal
(February 3, 2009) (May 7, 2009)
2007
Information & 2,630.0 2,594.0 (36.0 ) 2,761.1
Telecommunication Systems
Electronic Devices 1,160.0 1,151.0 (9.0 ) 1,293.5
Power & Industrial Systems 3,230.0 3,310.0 80.0 3,568.1
Digital Media & Consumer 1,270.0 1,261.0 (9.0 ) 1,504.6
Products
High Functional Materials 1,580.0 1,557.0 (23.0 ) 1,875.0
& Components
Logistics, Services & Others 1,070.0 1,090.0 20.0 1,271.4
Financial Services 400.0 412.0 12.0 445.4
Eliminations & Corporate (1,320.0 ) (1,375.0 ) (55.0 ) (1,492.6 )
items
Total 10,020.0 10,000.0 (20.0 ) 11,226.7
(2) Operating Income (Loss) by Industry Segment (Billions of yen)
Previous forecast (A) Revised forecast (B) ((B)-(A)) Fiscal
(February 3, 2009) (May 7, 2009) 2007
Information & 169.0 176.0 7.0 116.1
Telecommunication Systems
Electronic Devices 28.0 27.0 (1.0 ) 54.0
Power & Industrial Systems 7.0 24.0 17.0 138.4
Digital Media & Consumer (109.0 ) (106.0 ) 3.0 (109.9 )
Products
High Functional Materials 4.0 27.0 23.0 141.0
& Components
Logistics, Services & Others 16.0 23.0 7.0 27.8
Financial Services 15.0 10.0 (5.0 ) 25.4
Eliminations & Corporate (90.0 ) (54.0 ) 36.0 (47.5 )
items
Total 40.0 127.0 87.0 345.5
3. Extraordinary Items on Unconsolidated Basis
Hitachi plans to post extraordinary losses for structural reform of 186,828
million yen. This primarily includes charges for supporting and realigning
affiliated companies in connection with business restructuring, realignment and
integration of bases, and workforce downsizing designed to structurally improve
consumer and automotive systems businesses. Hitachi also plans to post
impairment losses in connection with this restructuring.
Moreover, the Company expects 185,232 million yen of extraordinary losses as
write-downs of subsidiaries shares relating to shares of subsidiaries that have
experienced a sharp drop in market price or actual price. Hitachi also
anticipates write-downs of investment securities of 7,013 million yen relating
to investment securities that have experienced a sharp decline in market price,
as well as impairment losses of 6,138 million yen relating to fixed assets and
other assets that have resulted in decreased profitability.
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:
• increased commoditization
of information technology
products and digital media
related products and
intensifying price
competition for such
products, particularly in
the Information &
Telecommunication Systems
segment, Electronic Devices
segment and Digital Media &
Consumer Products segment;
• fluctuations in product
demand and industry
capacity, particularly in
the Information &
Telecommunication Systems
segment, Electronic Devices
segment and Digital Media &
Consumer Products segment;
• 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, particularly in
the Information &
Telecommunication Systems
segment, Electronic Devices
segment and Digital Media &
Consumer Products segment;
• exchange rate fluctuation
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;
• increases in the price of
raw materials including,
without limitation,
petroleum and other
materials, such as copper,
steel, aluminum and
synthetic resins;
• uncertainty as to Hitachi`s
ability to implement
measures to reduce the
potential negative impact
of fluctuations in product
demand, exchange rate
fluctuation and/or
increases in the price of
raw materials;
• general socio-economic and
political conditions and
the regulatory and trade
environment of Hitachi`s
major markets, particularly
Japan, Asia, the United
States and Europe,
including, without
limitation, a return to
stagnation or a
deterioration of the
Japanese economy, 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 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;
• uncertainty as to the success of restructuring efforts to improve management
efficiency and to strengthen competitiveness;
• 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 ability to access, or access on favorable terms,
liquidity or long-term financing; and
• uncertainty as to general
market price levels for
equity securities in Japan,
declines in which may
require Hitachi to write
down equity securities it
holds.
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)(TOKYO:6501), headquartered in Tokyo, Japan, is a
leading global electronics company with approximately 390,000 employees
worldwide. Fiscal 2007 (ended March 31, 2008) consolidated revenues totaled
11,226 billion yen ($112.3 billion). The company offers a wide range of systems,
products and services in market sectors including information systems,
electronic devices, power and industrial systems, consumer products, materials,
logistics and financial services. For more information on Hitachi, please visit
the company's website at http://www.hitachi.com.
Hitachi, Ltd.
Masanao Sato, +81-3-5208-9324 (Japan)
masanao.sato.sz@hitachi.com
or
Hitachi America, Ltd.
Dash Hisanaga, +1-914-333-2987 (U.S.)
tadashi.hisanaga@hal.hitachi.com
or
Hitachi Europe Ltd.
Daniela Karthaus, +44-1628-585379 (Europe)
Daniela.karthaus@hitachi-eu.com
or
Hitachi (China) Ltd.
Nobuya Abematsu, +86-10-6539-9139 (China)
nabematsu@hitachi.cn
or
Hitachi Asia Ltd.
Keisuke Sugano, +65-6231-2225 (Singapore)
ksugano@has.hitachi.com.sg
Copyright Business Wire 2009
