Newspaper article THE JOURNAL RECORD

Hitachi Net Income Drops 14.2 Percent

Newspaper article THE JOURNAL RECORD

Hitachi Net Income Drops 14.2 Percent

Article excerpt

TOKYO - A 14.2 percent decrease in net income to $433 million, or 15 cents per share, was reported Thursday for the six months ended Sept. 30 by Hitachi Ltd., which plans to start construction in April 1986 on a $9 million manufacturing plant in Norman.

Hitachi had net income $505 million, or 17 cents per share, for the six months ended Sept. 30, 1984. Sales for the period totaled $12.7 billion, up 3.2 percent from $12.3 billion.

Results were converted at a rate of 200 yen equaling $1 U.S., the approximate exchange rate prevailing on the Tokyo foreign exchange market on Nov. 22.

Hitachi announced on Nov. 26 that it would built a plant in Norman on a 68-acre track of land southeast of the University of Oklahoma campus. The proposed plant site is bordered on the south by State Hwy. 9 and on the north by Imhoff Rd.

The 65,000-square-foot plant, scheduled to be in operation by April 1987, is being built to manufacture large computer

Hitachi and other Japanese companies have taken big chunks of U.S. electronics markets away from U.S. companies, but have been hurt by the long slump in computers and electronic equipment as well as the sharp rise in the value of the yen against the dollar in recent months.

Company spokesmen said they expected the current electronics slump to continue so that net sales would decline about 2 percent and earnings would fall about 25 percent in the full fiscal year, which runs through March.

That would be Hitachi's first annual sales drop since 1975 and its first earnings drop since 1974, spokesmen said in an interview.

""It's a rather unfortunate year for us,'' said Kazuya Hanazuka, one of three Hitachi spokesmen who released Hitachi's earnings in New York. The six-month earnings statement was also issued in Tokyo.

Company fficials said semiconductor sales in the U.S. showed a sharp drop, tumbling almost 50 percent from the year-earlier level due to slumping demand stemming from depressed personal computer sales.

In the face of the slow sales, Hitach has already decided to cut its semiconductor-related capital spending in fiscal 1985 by 31 percent from the original outlay of 130 billion yen. …

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