Hitachi Shows Major Improvement in Profits.Business Editors TOKYO--(BUSINESS WIRE)--April 27, 2001 Hitachi Hitachi (hētä`chē), city (1990 pop. 202,141), Ibaraki prefecture, E central Honshu, Japan, on the Kashima Sea. The city is a leading producer of Japan's electrical equipment. , Ltd. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :6501) today announced results for the fiscal year 2000, ended March 31, 2001. During the fiscal year, the Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and economy was given a partial boost by private-sector capital investment in information technology. At the same time, however, public-sector investment remained sluggish, and a recovery in personal consumption lacked any real strength. Overseas, the U.S. economy slowed in the second half of 2000, but still managed to maintain a high rate of growth. Despite being affected by the U.S. slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , the Asian and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. economies continued to grow steadily. In this climate, Hitachi's operating segments all posted higher sales, resulting in consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of 8,416,982 million yen (US$67,879 million), 5% higher than the preceding year. Consolidated business results are for Hitachi, Ltd. and its 1,069 subsidiaries, including 335 overseas corporations. By segment, in the latter half of the fiscal year Information Systems & Electronics carried out some adjustment of electronic components inventories, and a decrease in prices resulted in lower sales of thin-film transistor (TFT (Thin Film Transistor) The term typically refers to active matrix screens on laptop computers. Active matrix LCD provides a sharper screen display and broader viewing angle than does passive matrix. See LCD and thin film. TFT - Thin Film transistor ) LCDs. However, strong first-half growth of system LSIs and memories helped semiconductors to post a year-on-year gain. In computer operations, storage system sales System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. were higher, making up for a sharp decline in overseas sales of mainframe mainframe Digital computer designed for high-speed data processing with heavy use of input/output units such as large-capacity disks and printers. They have been used for such applications as payroll computations, accounting, business transactions, information retrieval, computers. In Japan, good growth was also registered by the software, systems integration and services operations of Hitachi, Ltd., Hitachi Software Engineering Co., Ltd. and Hitachi Information Systems, Ltd. The overall result was an increase of 10% in segment sales, to 3,455,578 million yen (US$27,868 million). Operating in a climate marked by the continuing low level of capital expenditures by Japan's power companies, the Power & Industrial Systems segment maintained domestic and overseas sales of thermal thermal /ther·mal/ (ther´m'l) pertaining to or characterized by heat. ther·mal adj. 1. Of, relating to, using, producing, or caused by heat. 2. power systems at a stable level, achieving a year-on-year increase in sales of power systems. Sales of building system equipment and services continued to do well. As for industrial systems, with private-sector investment staging a mild recovery, there was a feeling that some business sectors, including chemical and pharmaceutical plants and energy-saving energy-saving adj [policy] → para ahorrar energía; [device] → que ahorra energía n → ahorro de energía energy-saving equipment, had finally bottomed out. Sales of rolling stock rolling stock Any of various readily movable transportation equipment such as automobiles, locomotives, railroad cars, and trucks. Rolling stock generally makes good collateral for loans because the equipment is standardized and easily transportable among and rolling mills rolling mill: see steel. , however, remained stagnant stagnant /stag·nant/ (stag´nant) 1. motionless; not flowing or moving. 2. inactive; not developing or progressing. . On the plus side, Hitachi Plant Engineering & Construction Co., Ltd. secured major orders for clean rooms for semiconductor production plants, and for thermal power systems. As a result, segment sales rose 7% year on year, to 2,530,772 million yen (US$20,409 million). In Consumer Products, air-conditioner sales growth slowed, while sales of refrigerators were higher than the preceding year, helped by a more comprehensive lineup A criminal investigation technique in which the police arrange a number of individuals in a row before a witness to a crime and ask the witness to identify which, if any, of the individuals committed the crime. of models. Also higher were sales of mobile phones. At Hitachi Maxell Hitachi Maxell (日立マクセル Hitachi Makuseru , Ltd., sales of computer tapes rose, but sales of lithium ion A rechargeable battery technology introduced in 1991 that provides greater charge per pound than nickel metal hydride. In 1993, Toshiba introduced the first notebook in the U.S. with a Li-ion battery. rechargeable batteries A rechargeable battery, also known as a storage battery, is a group of two or more secondary cells. These batteries can be restored to full charge by the application of electrical energy. declined, and optical storage media product sales were lackluster lack·lus·ter adj. Lacking brightness, luster, or vitality; dull. See Synonyms at dull. Adj. 1. lackluster - lacking brilliance or vitality; "a dull lackluster life"; "a lusterless performance" . Overall, segment sales for the fiscal year increased by 2%, to 923,458 million yen (US$7,447 million). In Materials, major first-half gains in sales of electronics-related materials by Hitachi Cable Hitachi Cable, Ltd. (日立電線株式会社 , Ltd., Hitachi Metals, Ltd. and Hitachi Chemical Co., Ltd. more than made up for the effects of electronic components inventory adjustments made during the second half. Thus, segment sales came to 1,460,638 million yen (US$11,779 million), 8% more than the preceding fiscal year. In Services & Other, Nissei Sangyo Co., Ltd. posted increases in sales of critical dimension measurement scanning electron microscopes scan·ning electron microscope n. Abbr. SEM An electron microscope that forms a three-dimensional image on a cathode-ray tube by moving a beam of focused electrons across an object and reading both the electrons scattered by the object and and other semiconductor manufacturing equipment, and optical communication components for wavelength division multiplexing See WDM. (communications) wavelength division multiplexing - (WDM) Multiplexing several Optical Carrier n signals on a single optical fibre by using different wavelengths (colours) of laser light to carry different signals. systems. In addition, Hitachi Capital Corporation posted gains in loan guarantees for purchases of automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. and other items. As a result, segment sales amounted to 2,458,270 million yen (US$19,825 million), a year-on-year increase of 15%. The Company spent 435,579 million yen (US$3,513 million) on research and development, an increase of 1% from the preceding year. R&D expenditures as a percentage of net sales were 5.2%. During the period, Hitachi's plant and equipment investment amounted to 971,095 million yen (US$7,831 million), an increase of 16%. As a result of the major improvement achieved by Information Systems & Electronics, particularly in semiconductor operations, and the gains made in Power & Industrial Systems, Materials and Services & Other segments, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. came to 342,312 million yen (US$2,761 million), representing a year-on-year increase of 96%. Other income amounted to 69,613 million yen (US$561 million), a decrease of 2,488 million yen (US$20 million). On the other hand, while interest and discount charges increased as a result of an increase in interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid debt, other deductions showed a dramatic decrease, to 88,270 million yen (US$712 million), owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de decreases in foreign exchange losses and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . Income before income taxes came to 323,655 million yen (US$2,610 million). After the deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of income taxes of 164,861 million yen (US$1,330 million) and minority interests of 54,414 million yen (US$439 million), net income amounted to 104,380 million yen (US$842 million). Outlook for Fiscal 2001 There are concerns over fading fading fading skin coloring. See Arabian fading syndrome (below). Declining in body condition, general health, activity and productivity. Arabian fading syndrome general health is unimpaired. personal consumption and a slowdown in private-sector capital investment, now that the Japanese economy has moved into a deflationary de·fla·tion n. 1. The act of deflating or the condition of being deflated. 2. A persistent decrease in the level of consumer prices or a persistent increase in the purchasing power of money because of a reduction in available phase. There is a further concern over the global impact of the slowdown the U.S. economy has been experiencing since the second half of 2000. For businesses, such factors create a difficult management environment that requires constant caution. In this climate, Hitachi will continue to steadily transform itself into a solution enterprise, using information technology to improve efficiency and implementing qualitative qualitative /qual·i·ta·tive/ (kwahl´i-ta?tiv) pertaining to quality. Cf. quantitative. qualitative pertaining to observations of a categorical nature, e.g. breed, sex. and structural changes to achieve the goals of "i.e. HITACHI Plan," its medium-term business plan. Hitachi's consolidated forecast for fiscal 2001, ending March 31, 2002, is as follows:
-- Net Sales 8,750,000 million yen ($70,565 million)
(year-on-year increase of 4%)
-- Operating income 280,000 million yen ($2,258 million)
(year-on-year decrease of 18%)
-- Income before income 270,000 million yen ($2,177 million)
taxes and minority (year-on-year decrease of 17%)
interests
-- Income before 136,000 million yen ($1,097 million)
minority interests (year-on-year decrease of 14%)
-- Net income 90,000 million yen ($726 million)
(year-on-year decrease of 14%)
All figures were converted at the rate of 124 yen = U.S. $1, the approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. exchange rate on the Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. Foreign Exchange Market as of March 30, 2001. Cautionary Statement Statements in this news release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which reflect management's current views with respect to certain future events and financial performance. Words such as "anticipate," "believe," "expect," "estimate," "intend," "plan," "project" and similar expressions which indicate future events and trends identify forward-looking statements. Actual results may differ materially from those projected or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the forward-looking statements and from historical trends. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. Factors that could cause actual results to differ materially from those projected or implied in any forward-looking statements include, but are not limited to, rapid technological change, particularly in the Information Systems & Electronics segment; uncertainty as to Hitachi's ability to continue to develop products and to market products that incorporate new technology on a timely and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. basis and achieve market acceptance; fluctuations in product demand and industry capacity, particularly in the Information Systems & Electronics segment and the Consumer Products segment; fluctuations in rates of exchange for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi's assets and liabilities are denominated, particularly between the yen and the U.S. dollar; uncertainty as to Hitachi's access to liquidity or long-term financing Long-term financing Liabilities repayable in more than one year plus equity. , particularly in the context of restrictions or availability of credit prevailing in Japan; uncertainty as to Hitachi's ability to implement measures to reduce the potential negative impact of fluctuations in product demand and/or and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. exchange rates; general economic conditions and the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and trade environment of Hitachi's major markets, particularly, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Japan and elsewhere in Asia, including, without limitation, continued stagnation Stagnation A period of little or no growth in the economy. Economic growth of less than 2-3% is considered stagnation. Sometimes used to describe low trading volume or inactive trading in securities. Notes: A good example of stagnation was the U.S. economy in the 1970s. or deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. of the Japanese or other East Asian economies, or direct or indirect restriction restriction - A bug or design error that limits a program's capabilities, and which is sufficiently egregious that nobody can quite work up enough nerve to describe it as a feature. by other nations of imports; uncertainty as to Hitachi's access to, or protection for, certain intellectual property rights, particularly those related to electronics and data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a technologies; Hitachi's dependence on alliances with other corporations in designing or developing certain products; and the market prices of equity securities in Japan, declines in which may result in write-downs of equity securities Hitachi holds.
HITACHI, LTD. AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2001
The consolidated financial statements presented herein are
expressed in yen and, solely for the convenience of the reader, have
been translated into United States dollars at the rate of 124 yen =
U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign
Exchange Market as of March 30, 2001.
SUMMARY
In millions of yen and U.S. dollars, except Net income per share
(6) and Net income per American Depositary Share (7).
Years ended March 31
YEN
(millions) (A)/(B) U.S.DOLLARS
2001 (A) 2000 (B) X100 (millions)
---------------------------------------------------------------------
1. Net sales 8,416,982 8,001,203 105 67,879
2. Operating income 342,312 174,364 196 2,761
3. Income before income
taxes and minority
interests 323,655 79,235 408 2,610
4. Income before minority
interests 158,794 31,733 500 1,281
5. Net income 104,380 16,922 617 842
6. Net income per share
Basic 31.27 5.07 617 0.25
Diluted 30.32 4.99 608 0.24
7. Net income per ADS
(representing 10
shares )
Basic 313 51 617 2.52
Diluted 303 50 608 2.44
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Notes: 1. The Company changed the method of carrying its
investment in a certain affiliated company from cost to
equity in the fiscal year ended March 31, 2000.
2. Statement of Financial Accounting Standards (SFAS) No.
115, "Accounting for Certain Investments in Debt and
Equity Securities," has been implemented in the body of
the consolidated financial statements for the fiscal year
ended March 31, 2001. Accordingly, figures for the fiscal
year ended March 31, 2000 have been restated.
3. The merger of Hitachi Leasing, Ltd. (an affiliated
company whose investment had been carried on the equity
method) with Hitachi Credit Corporation, a Hitachi
subsidiary, effective on October 1, 2000, is assumed to
have taken place on April 1, 2000. As a result, Hitachi
Leasing, Ltd. and its subsidiaries are consolidated as
subsidiaries for the fiscal year ended March 31, 2001.
4. SFAS No. 87, "Employers' Accounting for Pensions,"
has been implemented for the fiscal year ended March 31,
2001.
CONSOLIDATED STATEMENTS OF INCOME
Years ended March 31
YEN U.S. DOLLARS
(millions) (A)/(B) (millions)
2001 (A) 2000 (B) X100 2001
---------------------------------------------------------------------
Net sales 8,416,982 8,001,203 105 67,879
Cost of sales 6,155,023 5,898,756 104 49,637
Selling, general and
administrative
expenses 1,919,647 1,928,083 100 15,481
Operating income 342,312 174,364 196 2,761
Other income 69,613 72,101 97 561
(Interest and
dividends) 42,069 42,042 100 339
(Other) 27,544 30,059 92 222
Other deductions 88,270 167,230 53 712
(Interest) 58,759 52,015 113 474
(Other) 29,511 115,215 26 238
Income before income
taxes and minority
interests 323,655 79,235 408 2,610
Income taxes 164,861 47,502 347 1,330
Income before
minority interests 158,794 31,733 500 1,281
Minority interests 54,414 14,811 367 439
Net income 104,380 16,922 617 842
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CONSOLIDATED BALANCE SHEETS
YEN
(millions)
As of March 31, As of March 31,
2001 (A) 2000 (B)
---------------------------------------------------------------------
Assets 11,246,608 9,983,361
Current assets 6,844,501 5,965,543
Cash and cash equivalents 1,381,603 1,357,432
Short-term investments 433,650 632,434
Trade receivables
Notes 307,635 295,526
Accounts 2,191,698 1,908,692
Investment in leases 623,789 -
Inventories 1,514,163 1,416,878
Other current assets 391,963 354,581
Noncurrent receivables and
restricted funds 163,003 160,583
Investments and advances 885,669 817,436
Property, plant and equipment 2,674,957 2,554,749
Other assets 678,478 485,050
Liabilities and stockholders' equity 11,246,608 9,983,361
Current liabilities 4,622,657 3,939,836
Short-term debt and current
installments of long-term debt 1,611,855 1,305,670
Trade payables
Notes 138,161 98,058
Accounts 1,160,789 974,721
Advances received 385,741 382,085
Other current liabilities 1,326,111 1,179,302
Noncurrent liabilities 2,937,291 2,263,913
Long-term debt 1,881,270 1,482,810
Retirement and severance
benefits 982,332 699,385
Other liabilities 73,689 81,718
Minority interests 825,158 791,925
Stockholders' equity 2,861,502 2,987,687
Capital 281,754 281,738
Capital surplus 501,243 499,081
Legal reserve and retained
earnings 2,266,951 2,189,426
Accumulated other comprehensive
income (188,446) 17,442
(Foreign currency translation
adjustments) (57,647) (77,577)
(Minimum pension liability
adjustment) (182,936) -
(Net unrealized holding gains
on securities) 51,041 95,019
(Net unrealized gains on
derivative financial instruments) 1,096 -
(A)/(B) U.S.DOLLARS
X100 (millions)
As of March 31,
2001
---------------------------------------------------------------------
Assets 113 90,698
Current assets 115 55,198
Cash and cash equivalents 102 11,142
Short-term investments 69 3,497
Trade receivables
Notes 104 2,481
Accounts 115 17,675
Investment in leases - 5,031
Inventories 107 12,211
Other current assets 111 3,161
Noncurrent receivables and
restricted funds 102 1,315
Investments and advances 108 7,142
Property, plant and equipment 105 21,572
Other assets 140 5,472
Liabilities and stockholders' equity 113 90,698
Current liabilities 117 37,279
Short-term debt and current
installments of long-term debt 123 12,999
Trade payables
Notes 141 1,114
Accounts 119 9,361
Advances received 101 3,111
Other current liabilities 112 10,694
Noncurrent liabilities 130 23,688
Long-term debt 127 15,172
Retirement and severance
benefits 140 7,922
Other liabilities 90 594
Minority interests 104 6,655
Stockholders' equity 96 23,077
Capital 100 2,272
Capital surplus 100 4,042
Legal reserve and retained
earnings 104 18,282
Accumulated other comprehensive
income - (1,520)
(Foreign currency translation
adjustments) - (465)
(Minimum pension liability
adjustment) - (1,475)
(Net unrealized holding gains
on securities) 54 412
(Net unrealized gains on
derivative financial instruments) - 9
---------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
YEN U.S. DOLLARS
(millions) (millions)
Year ended Year ended Year Ended
March 31, March 31, March 31, 2001
2001 2000
Common stock
Balance at beginning
of year 281,738 281,735 2,272
Conversion of convertible
debentures 16 3 0
Balance at end of year 281,754 281,738 2,272
Capital surplus
Balance at beginning
of year 499,081 494,782 4,025
Conversion of convertible
debentures 1,069 3,954 9
Increase arising from sale
of subsidiaries' common
stock and other 1,093 345 9
Balance at end of year 501,243 499,081 4,042
Legal reserve
Balance at beginning
of year 106,885 105,905 862
Transfers from retained
earnings 2,971 1,271 24
Transfers to minority
interests arising from
conversion of
subsidiaries' convertible
debentures (17) (94) 0
Transfers to minority
interests arising from
sale of subsidiaries'
common stock and other (24) (197) 0
Balance at end of year 109,815 106,885 886
Retained earnings
Balance at beginning of
year as previously
reported - 2,083,936 -
Restatement - 16,456 -
Balance at beginning of
year as restated 2,082,541 2,100,392 16,795
Net income 104,380 16,922 842
Cash dividends (28,371) (28,371) (229)
Transfers to legal reserve (2,971) (1,271) (24)
Transfers to minority
interests arising from
conversion of subsidiaries'
convertible debentures (347) (2,291) (3)
Transfers to minority
interests arising from
sale of subsidiaries'
common stock and other 1,904 (2,840) 15
Balance at end of year 2,157,136 2,082,541 17,396
Legal reserve and retained
earnings 2,266,951 2,189,426 18,282
Accumulated other comprehensive income (loss)
Foreign currency translation adjustments
Balance at beginning
of year (77,577) (58,065) (626)
Current-period change 19,930 (19,512) 161
Balance at end of year (57,647) (77,577) (465)
Minimum pension liability adjustment
Balance at beginning
of year - - -
Current-period change (182,936) - (1,475)
Balance at end of year (182,936) - (1,475)
Net unrealized holding gains on securities, net of reclassification
adjustment
Balance at beginning of year
as previously reported - - -
Restatement - 81,266 -
Balance at beginning of year
as restated 95,019 81,266 766
Current-period change (43,978) 13,753 (355)
Balance at end of year 51,041 95,019 412
Net unrealized gains on derivative financial instruments
Balance at beginning
of year - - -
Changes in the fair value of
derivative financial
instruments 1,096 - 9
Balance at end of year 1,096 - 9
Accumulated other
comprehensive income
(loss) (188,446) 17,442 (1,520)
Total stockholders'
equity 2,861,502 2,987,687 23,077
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CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended March 31
YEN U.S. DOLLARS
(millions) (millions)
2001 2000 2001
---------------------------------------------------------------------
Cash flows from operating activities
Net income 104,380 16,922 842
Adjustments to reconcile net income
to net cash provided by
operating activities
Depreciation 505,507 541,253 4,077
Deferred income taxes 12,505 (67,179) 101
Loss on disposal of rental
assets and other property 19,165 19,921 155
Increase in receivables (72,035) (107,685) (581)
Increase in inventories (128,477) (26,273) (1,036)
Increase in payables 95,855 78,728 773
Other (1,467) (4,237) (12)
Net cash provided by
operating activities 535,433 451,450 4,318
Cash flows from investing activities
(Increase) decrease in
short-term investments 198,610 (15,155) 1,602
Capital expenditures (463,585) (365,744) (3,739)
Proceeds from sale and
purchase of rental
assets (436,163) (118,273) (3,517)
Proceeds from sale and
purchase of investments
and subsidiaries' common
stock (75,000) 27,508 (605)
Collection of investment
in leases 421,527 - 3,399
Other (16,106) 36,073 (130)
Net cash used in
investing activities (370,717) (435,591) (2,990)
Cash flows from financing activities
Increase (decrease) in
interest-bearing debt (128,875) 164,525 (1,039)
Dividends paid to
stockholders (28,235) (27,762) (228)
Dividends paid to minority
stockholders of
subsidiaries (15,739) (12,033) (127)
Other 13,342 1,100 108
Net cash provided by
(used for) financing
activities (159,507) 125,830 (1,286)
Effect of exchange rate
changes on cash and cash
equivalents 18,962 (21,784) 153
Net increase in cash and
cash equivalents 24,171 119,905 195
Cash and cash equivalents
at beginning of year 1,357,432 1,237,527 10,947
Cash and cash equivalents
at end of year 1,381,603 1,357,432 11,142
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SEGMENT INFORMATION
(1) INDUSTRY SEGMENTS
Years ended March 31
YEN (A)/(B) U.S. DOLLARS
(millions) X100 (millions)
2001 (A) 2000 (B) 2001
---------------------------------------------------------------------
SALES
Information Systems 3,455,578 3,148,888 110 27,868
Electronics 32% 32%
Power & Industrial 2,530,772 2,372,610 107 20,409
Systems 23% 24%
Consumer Products 923,458 904,992 102 7,447
9% 9%
Materials 1,460,638 1,346,292 108 11,779
13% 13%
Services & Other 2,458,270 2,146,177 115 19,825
23% 22%
Subtotal 10,828,716 9,918,959 109 87,328
100% 100%
Eliminations &
Corporate items (2,411,734) (1,917,756) - (19,449)
Total 8,416,982 8,001,203 105 67,879
OPERATING INCOME
Information Systems
& Electronics 142,111 52,325 272 1,146
38% 24%
Power & Industrial
Systems 85,216 41,790 204 687
22% 19%
Consumer Products 2,478 19,949 12 20
1% 9%
Materials 82,148 49,887 165 662
22% 23%
Services & Other 66,428 53,781 124 536
17% 25%
Subtotal 378,381 217,732 174 3,051
100% 100%
Eliminations & Corporate
items (36,069) (43,368) - (291)
Total 342,312 174,364 196 2,761
Note: Net sales by industry segment include intersegment
transactions.
Supplementary information for fiscal 2000,
ended March 31, 2001 (Consolidated basis)
1. Summary (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001 (Forecast)
(A) (A)/ (B) (B)/(A) 1st half Note 2 (C) (C)/(B)
FY98 of
FY 2001
---------------------------------------------------------------------
Net sales 8,001.2 100% 8,416.9 105% 4,120.0 103% 8,750.0 104%
---------------------------------------------------------------------
C/U
(Note 1) 212% - 210% - 218% - 228%
---------------------------------------------------------------------
Operating
income 174.3 - 342.3 196% 80.0 48% 280.0 82%
---------------------------------------------------------------------
Income
before
income
taxes and
minority
interests 79.2 - 323.6 408% 80.0 52% 270.0 83%
---------------------------------------------------------------------
Income
before
minority
interests 31.7 - 158.7 500% 37.0 40% 136.0 86%
---------------------------------------------------------------------
Income
before
minority
interests/
(Stockholders'
equity+
Minority
interests) 0.8% - 4.3% - - - - -
---------------------------------------------------------------------
Net income 16.9 - 104.3 617% 20.0 32% 90.0 86%
---------------------------------------------------------------------
C/U
(Note 1) 143% - 260% - 167% - 225% -
---------------------------------------------------------------------
ROE 0.6% - 3.6% - - - - -
---------------------------------------------------------------------
Average
exchange
rate
(yen/U.S.$) 111 - 111 - 120 - 120 -
---------------------------------------------------------------------
Net interest
and
dividends (9.9) - (16.6) - (5.0) - (15.0) -
---------------------------------------------------------------------
Notes: 1. C/U: Consolidated basis/Unconsolidated basis
2. 1st half of FY 2001/1st half of FY 2000
As of March 31, 2000 As of March 31, 2001
---------------------------------------------------------------------
Cash & cash equivalents,
Short-term investments
(Billions of yen) 1,989.8 1,815.2
---------------------------------------------------------------------
Interest-bearing debt
(Billions of yen) 2,788.4 3,493.1
---------------------------------------------------------------------
Number of employees 337,911 340,939
--------------------------------------------------------------------
Japan 270,092 268,090
--------------------------------------------------------------------
Overseas 67,819 72,849
---------------------------------------------------------------------
Number of consolidated
subsidiaries 1,047 1,069
--------------------------------------------------------------------
Japan 735 734
--------------------------------------------------------------------
Overseas 312 335
---------------------------------------------------------------------
2. Sales by industry segment (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (A)/FY (B) (B)/(A) (C) (C)/(B)
1998
---------------------------------------------------------------------
Information Systems
& Electronics 3,148.8 101% 3,455.5 110% 3,615.0 105%
--------------------------------------------------------------------
Electronic Devices 960.0 109% 1,040.0 108% 1,060.0 102%
--------------------------------------------------------------------
Information,
Telecommunication &
Other 2,188.8 98% 2,415.5 110% 2,555.0 106%
---------------------------------------------------------------------
Power & Industrial
Systems 2,372.6 99% 2,530.7 107% 2,440.0 96%
---------------------------------------------------------------------
Consumer Products 904.9 101% 923.4 102% 1,080.0 117%
---------------------------------------------------------------------
Materials 1,346.2 101% 1,460.6 108% 1,515.0 104%
---------------------------------------------------------------------
Services & Other 2,146.1 101% 2,458.2 115% 2,520.0 103%
---------------------------------------------------------------------
Subtotal 9,918.9 100% 10,828.7 109% 11,170.0 103%
---------------------------------------------------------------------
Eliminations &
Corporate items (1,917.7) - (2,411.7) - (2,420.0) -
---------------------------------------------------------------------
Total 8,001.2 100% 8,416.9 105% 8,750.0 104%
---------------------------------------------------------------------
3. Operating income by industry segment (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (A)/FY (B) (B)/(A) (C) (C)/(B)
1998
---------------------------------------------------------------------
Information Systems
& Electronics 52.3 - 142.1 272% 82.0 58%
--------------------------------------------------------------------
Electronic Devices 32.0 - 87.3 272% (1.0) -
--------------------------------------------------------------------
Information,
Telecommunication &
Other 20.2 68% 54.7 270% 83.0 152%
---------------------------------------------------------------------
Power & Industrial
Systems 41.7 138% 85.2 204% 89.0 104%
---------------------------------------------------------------------
Consumer Products 19.9 - 2.4 12% 10.0 404%
---------------------------------------------------------------------
Materials 49.8 179% 82.1 165% 65.0 79%
---------------------------------------------------------------------
Services & Other 53.7 104% 66.4 124% 73.0 110%
---------------------------------------------------------------------
Subtotal 217.7 - 378.3 174% 319.0 84%
---------------------------------------------------------------------
Eliminations &
Corporate items (43.3) - (36.0) - (39.0) -
---------------------------------------------------------------------
Total 174.3 - 342.3 196% 280.0 82%
---------------------------------------------------------------------
4. Overseas sales by industry segment (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 2002 (Forecast)
(A) (A)/FY (B) (B)/(A) (C) (C)/(B)
1998
---------------------------------------------------------------------
Information Systems &
Electronics 671.5 93% 748.1 111%
---------------------------------------------------------------------
Power & Industrial
Systems 410.3 93% 418.9 102%
---------------------------------------------------------------------
Consumer Products 319.6 85% 321.0 100%
---------------------------------------------------------------------
Materials 318.4 106% 376.6 118%
---------------------------------------------------------------------
Services & Other 623.6 104% 760.5 122%
---------------------------------------------------------------------
Eliminations &
Corporate items 0 - 2 -
---------------------------------------------------------------------
Total 2,343.6 96% 2,625.6 112% 2,750.0 105%
---------------------------------------------------------------------
5. Sales by Market (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (A)/FY (B) (B)/(A) (C) (C)/(B)
1998
---------------------------------------------------------------------
Japan 5,657.5 102% 5,791.3 102% 6,000.0 104%
---------------------------------------------------------------------
Asia 897.6 100% 966.8 108%
--------------------------------------------------------------------
North America 767.2 91% 903.8 118%
--------------------------------------------------------------------
Europe 484.7 90% 550.9 114%
--------------------------------------------------------------------
Other Areas 193.9 114% 204.0 105%
--------------------------------------------------------------------
Outside Japan 2,343.6 96% 2,625.6 112% 2,750.0 105%
---------------------------------------------------------------------
Total 8,001.2 100% 8,416.9 105% 8,750.0 104%
---------------------------------------------------------------------
6. Overseas production (Total sales of overseas
manufacturing subsidiaries) (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000
(A) (A)/FY (B) (B)/(A)
1998
---------------------------------------------------------------------
Overseas production 1,058.1 93% 1,292.3 122%
--------------------------------------------------------------------
Percentage of net sales 13% - 15% -
--------------------------------------------------------------------
Percentage of overseas sales 45% - 49% -
--------------------------------------------------------------------
7. Capital investment (Completion basis) (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (B) (B)/(A) (C) (C)/(B)
---------------------------------------------------------------------
Information Systems &
Electronics 239.4 315.1 132%
---------------------------------------------------------------------
Power & Industrial
Systems 68.1 80.0 117%
---------------------------------------------------------------------
Consumer Products 41.3 45.3 110%
---------------------------------------------------------------------
Materials 83.9 110.0 131%
---------------------------------------------------------------------
Services & Other 447.9 483.6 108%
---------------------------------------------------------------------
Eliminations & (43.8) (63.1) -
Corporate items
---------------------------------------------------------------------
Capital investment
(Total) 836.9 971.0 116% 1,025.0 106%
-------------------------------------------------------------------
Leasing Assets 407.9 429.9 105% 525.0 122%
-------------------------------------------------------------------
Other 429.0 541.1 126% 500.0 92%
---------------------------------------------------------------------
8. Depreciation (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (B) (B)/(A) (C) (C)/(B)
---------------------------------------------------------------------
Information Systems &
Electronics 218.6 216.3 99%
---------------------------------------------------------------------
Power & Industrial
Systems 70.8 67.1 95%
---------------------------------------------------------------------
Consumer Products 45.9 44.5 97%
---------------------------------------------------------------------
Materials 81.7 83.1 102%
---------------------------------------------------------------------
Services & Other 108.5 83.7 77%
---------------------------------------------------------------------
Eliminations &
Corporate items 11.9 10.5 88%
---------------------------------------------------------------------
Depreciation (Total) 537.6 505.5 94% 578.8 114%
--------------------------------------------------------------------
Leasing Assets 93.9 68.6 73% 110.8 161%
--------------------------------------------------------------------
Other 443.6 436.8 98% 468.0 107%
---------------------------------------------------------------------
Note: The merger of Hitachi Leasing, Ltd. (an affiliated company whose
investment had been carried out on the equity method) with Hitachi
Credit Corporation, a Hitachi subsidiary, effective on October 1,
2000, is assumed to have taken place on April 1, 2000. As a
result, Hitachi Leasing, Ltd. and its subsidiaries are
consolidated as subsidiaries for fiscal 2000. Accordingly, capital
investment and depreciation for fiscal 1999 have been restated.
9. R&D expenditure (Billions of yen)
---------------------------------------------------------------------
Fiscal 1999 Fiscal 2000 Fiscal 2001
(Forecast)
(A) (A)/FY (B) (B)/(A) (C) (C)/(B)
1998
---------------------------------------------------------------------
Information Systems &
Electronics 281.9 85% 287.6 102%
---------------------------------------------------------------------
Power & Industrial
Systems 73.9 80% 69.7 94%
---------------------------------------------------------------------
Consumer Products 29.1 116% 32.6 112%
---------------------------------------------------------------------
Materials 44.7 97% 43.8 98%
---------------------------------------------------------------------
Services & Other 2.5 182% 1.6 64%
---------------------------------------------------------------------
Total 432.3 87% 435.5 101% 433.0 99%
--------------------------------------------------------------------
Percentage of net
sales 5.4% - 5.2% - 4.9% -
---------------------------------------------------------------------
Supplementary information on Information Systems & Electronics sector
1. Computers
Sales (total internal and external sales) (Upper rows are percentage
changes from preceding year; billions of yen)
Fiscal 2000 Fiscal 2001 (Forecast)
1st 2nd Total 1st 2nd Total
half half half half
---------------------------------------------------------------------
Consolidated 99% 108% 103% 113% 109% 111%
basis Total 795 932 1,727 900 1,020 1,920
---------------------------------------------------------------------
Unconsolidated 100% 106% 103% 102% 100% 101%
basis Total 623 725 1,348 634 722 1,356
-------------------------------------------------------------------
In Japan 105% 101% 103% 103% 102% 103%
515 600 1,115 532 614 1,146
-------------------------------------------------------------------
Export 81% 136% 104% 94% 86% (a)90%
108 125 233 102 108 210
-------------------------------------------------------------------
Export ratio 17.3% 17.2% 17.3% 16.1% 15.0% 15.5%
---------------------------------------------------------------------
(a) Changes in the formats of agreements with overseas affiliates will
result in a decrease of exports in terms of units, but there will
still be an increase of 12% compared to the previous level.
Orders received for main products, in numbers of units (includes
export models other than PC export models): unconsolidated basis
Fiscal 2000 Fiscal 2001 (Forecast)
1st 2nd Total 1st 2nd Total
half half half half
---------------------------------------------------------------------
Supercomputers 10 12 22 11 13 24
---------------------------------------------------------------------
General-purpose
computers (Total) 384 269 653 176 175 351
---------------------------------------------------------------------
High-end (A) 96 68 164 5 5 10
---------------------------------------------------------------------
Large (B) 167 97 264 39 40 79
---------------------------------------------------------------------
(A)+(B) 263 165 428 44 45 89
---------------------------------------------------------------------
Midrange 121 104 225 132 130 262
---------------------------------------------------------------------
UNIX servers 1,400 800 2,200 1,300 1,600 2,900
---------------------------------------------------------------------
UNIX workstations 1,000 700 1,700 700 700 1,400
---------------------------------------------------------------------
PCs & PC servers 310,000 340,000 650,000 330,000 390,000 720,000
---------------------------------------------------------------------
Large-capacity
disk storage
subsystems (RAID) 3,300 5,400 8,700 7,000 9,000 16,000
---------------------------------------------------------------------
Notes: Figures for supercomputers and general-purpose computers
are based on the number of instruction processors.
Figures for parallel supercomputers (SR series) are based
on the number of systems.
Figures for disk storage subsystems are based on the
number of terabytes.
Domestic orders received by information systems operations, by product
sector: unconsolidated basis(b)
Fiscal 1999 Fiscal 2000
Hardware 43% 38%
Software, Services 57% 62%
(b) Information systems operations: Solution Systems, Information &
Telecommunication Platform Systems and Information & Network Services
(excluding Telecommunication Systems)
Domestic orders received by information systems operations, by
industry: unconsolidated basis(c)
Fiscal 1999 Fiscal 2000
Finance 27% 28%
Manufacturing 19% 20%
Distribution 19% 21%
Public utilities, other 35% 31%
(c) Information systems operations: Solution Systems, Information &
Telecommunication Platform Systems and Information & Network Services
(excluding Telecommunication Systems)
-- Outline of operations:
Fiscal 2000
In Japan, the solutions business grew steadily, with demand coming
mainly from the financial sectors, while overseas, growth was
registered by storage operations, enabling higher revenues to be
achieved.
Fiscal 2001 (Forecast)
Continuing growth is projected for the solutions business in
Japan, and for the storage business overseas.
2. Telecommunication Systems (unconsolidated basis)
Sales (total internal and external sales, unconsolidated basis)
(Upper rows are percentage changes from
preceding year; billions of yen)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001(Forecast) (d)
1st 2nd Total 1st 2nd Total
half half half half
---------------------------------------------------------------------
109% 109% 109% 115% 110% 112%
Total 101 117 218 116 129 245
---------------------------------------------------------------------
Export ratio 9% 11% 10% 14% 12% 13%
---------------------------------------------------------------------
(d) From fiscal 2001, the optical components business will be
transferred to affiliated companies. A year-on-year increase of 29% is
projected.
-- Outline of operations:
Fiscal 2000
In addition to brisk domestic sales of cellular phones and ISDN
switchboards, export sales of optical components to North America
were sharply higher, resulting in an overall increase in sales
compared to the preceding year.
Fiscal 2001 (Forecast)
Domestic sales of cellular phones and large export sales of
optical transmission systems to North America are expected to
result in a year-on-year improvement.
3. Semiconductors (consolidated basis)
Sales (Upper rows are percentage changes from
preceding year; billions of yen)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001 (Forecast)
1st half 2nd half Total 1st half 2nd half Total
---------------------------------------------------------------------
122% 109% 115% 95% 108% 101%
390 380 770 370 410 780
---------------------------------------------------------------------
Sales by division
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001
(Forecast)
---------------------------------------------------------------------
DRAM Business Division 18% 15%
---------------------------------------------------------------------
System Memory Business Division 9% 11%
---------------------------------------------------------------------
System LSI Business Division 48% 58%
---------------------------------------------------------------------
Multi-Purpose Semiconductor Business Division 25% 24%
---------------------------------------------------------------------
Semiconductor Capital Investment (Billions of yen)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001
(Planned)
---------------------------------------------------------------------
Naka Operation 14 10
------------------------------------------------------------------
Takasaki Operation 12 7
------------------------------------------------------------------
Koufu Operation 30 17
------------------------------------------------------------------
Other 20 10
------------------------------------------------------------------
Parent subtotal 76 44
(1st half:36, (1st half:9,
2nd half:40) 2nd half:35)
--------------------------------------------------------------------
TTI(e) 70 55
------------------------------------------------------------------
Other 48 20
------------------------------------------------------------------
Domestic subsidiaries 118 75
-------------------------------------------------------------------
HNS(f) 13 14
------------------------------------------------------------------
Other 13 7
------------------------------------------------------------------
Overseas subsidiaries 26 21
-------------------------------------------------------------------
Subsidiaries subtotal 144 96
--------------------------------------------------------------------
Hitachi consolidated total 220 140
(1st half:148, (1st half:33,
2nd half:72) 2nd half:107)
---------------------------------------------------------------------
(e) 1: TTI: Trecenti Technologies, Inc.
(f) 2: HNS: Hitachi Nippon Steel Semiconductor Singapore Pte. Ltd.
DRAM production quantity
As of April 2001 Planned
---------------------------------------------------------------------
64MDRAM 6 million pieces/month December 2001: 3 million
pieces/month
March 2002: 2 million
pieces/month
---------------------------------------------------------------------
256MDRAM 2 million pieces/month December 2001: 3 million
pieces/month
March 2002: 3.5 million
pieces/month
---------------------------------------------------------------------
Flash Memory production quantity
As of April 2001 Planned
---------------------------------------------------------------------
64M Flash Memory 100,000 pieces/month December 2001: 100,000
pieces/month
March 2002: 100,000
pieces/month
---------------------------------------------------------------------
256M Flash Memory 600,000 pieces/month December 2001: 800,000
pieces/month
March 2002: 1 million
pieces/month
---------------------------------------------------------------------
Microprocessor/microcontroller sales (Billions of yen;
% change from preceding year)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001 (Forecast)
---------------------------------------------------------------------
240 120% 260 108%
-- Outline of operations :
Fiscal 2000
Sales rose 15% year on year, to 770 billion yen, helped by growth
of microprocessors/microcontrollers and other system LSI products,
high-power amplifiers for GSM applications, and system memory
products.
Fiscal 2001(Forecast)
System LSI products and system memory products are expected to
grow, but sales of DRAMs, discretes and some other products are
expected to decrease, resulting in projected sales of 780 billion
yen, a year-on-year increase of 1%.
4. Displays (consolidated basis)
Sales (Billions of yen;
% change from preceding year)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001 (Forecast)
---------------------------------------------------------------------
Total 270 93% 280 104%
(1st half: 150, (1st half: 120,
2nd half: 120) 2nd half: 160)
---------------------------------------------------------------------
Major products
--------------------------------------------------------------------
LCDs 153 96% 170 111%
--------------------------------------------------------------------
Color display
tubes 59 84% 49 83%
--------------------------------------------------------------------
Color picture
tubes 22 85% 27 123%
--------------------------------------------------------------------
Projection tubes 20 111% 24 120%
---------------------------------------------------------------------
LCD Production (Billions of yen;
% change from preceding year)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001 (Forecast)
1st 2nd Total 1st 2nd Total
half half half half
---------------------------------------------------------------------
TFT LCDs 79 55 134 93% 58 86 144 107%
---------------------------------------------------------------------
STN LCDs 10 9 19 119% 11 15 26 137%
---------------------------------------------------------------------
Total 89 64 153 96% 69 101 170 111%
---------------------------------------------------------------------
LCD Capital Investment (Billions of yen;
% change from preceding year)
---------------------------------------------------------------------
Fiscal 2000 Fiscal 2001 (Planned)
1st half 2nd half Total Total
---------------------------------------------------------------------
28 27 55 177% 10 18%
---------------------------------------------------------------------
-- Outline of operations:
Fiscal 2000
Falling prices of TFT LCDs and color display tubes resulted in a
sales of 270 billion yen, 7% less than the preceding year.
Fiscal 2001(Forecast)
A new production line for TFT LCDs, along with a move into
medium-sized and small model sectors, is expected to push up sales
by 4%, to 280 billion yen.
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