Hitachi Announces Revision of Business Forecast for the Fiscal 2001 and Decision on Year-End Dividend
Feb 28, 2002 11:49 AM
Tokyo, February 28, 2002 --- Hitachi, Ltd. (TSE:6501/NYSE:HIT) today announced that the Company has revised its business forecast for the year ending March 31, 2002 and has decided not to pay the year-end dividend. The revisions were decided at a meeting of the Board of Directors held today.
1. Revision of business forecast for the fiscal 2001, ending March 31, 2002
(1) Business forecast / Consolidated
In millions of yen. Year-on-year comparison shown as percentage.
Factors relating to the revision of the forecast > The sluggish demand in IT-related products and deterioration of the Japanese economy has significantly affected the Company's business, especially for the electronic devices such as semiconductors and displays, electronics-related materials, telecommunication systems for carriers, construction machinery, industrial components and equipment businesses. Due to this, the Company is expecting lower results than the previous forecast.
As for other deductions, the Company plans to post 134 billion yen for restructuring charges, including those for worldwide restructuring in semiconductor business, withdrawal from cathode ray tubes for PC monitors, restructuring of digital media business outside of Japan, streamlining of telecommunication systems business for the U.S. market and streamlining measures taken in high functional materials and components business. A 146 billion yen charge is also planned primarily for special termination benefits, including 67 billion yen related to the early retirement plan introduced in the parent company. Due to the sluggishness in the stock market, the Company plans to post securities-related loss of 84 billion yen mainly for impairment loss.
Factors relating to the revision of the forecast > Net sales is expected to reach the previous forecast. However, operating loss is expected to expand due to sluggishness in such businesses as electronic devices, digital media and consumer products.
The Company plans to post an extraordinary loss, including 90 billion yen restructuring charges for semiconductor, displays and digital media businesses; 80 billion yen for such costs as special termination benefits for the early retirement plan; and 86 billion yen for impairment loss on securities.
2. Year-end dividend for the fiscal 2001, ending March 31, 2002
In view of the decline in business results, the year-end dividend is not to be paid.
Reference: Dividends paid for the fiscal 2000, ended March 31, 2001
Interim dividend :5.5 yen per share
Year-end dividend:5.5 yen per share
Dividends for the fiscal 2001, ending March 31, 2002
Interim dividend:3.0 yen per share
Year-end dividend:0.0 yen per share.