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Hitachi forecasts massive profit jump

Hitachi forecasts massive profit jump

Japanese electrics and electronics company Hitachi believes it will have tripled its current global profits by 2002.

At the launch of Hitachi's DVD, Plasma screen and HDTV home theatre products, the company's local managing director, Jiro Katsura, said 75 per cent of Hitachi's Australian consumer sales would be directed via the reseller channel. Consumer sales comprise less than half of Hitachi's total revenue.

Katsura said the company expected to boost its Australian revenues from just under $100 million in 1999 to almost $200 million in 2003. However, he said most of these revenues would still come from non-IT sales.

Company subsidiary Hitachi Data Systems also announced the release of its 16-way Skyline Trinium Nine Web servers. The Trinium is designed for e-business transactions, Hitachi said.

Mr S. Ohtsu, deputy general manager for the company's local business and development division, said the company would attempt to increase its worldwide profits from $US1.7 billion in 1999 to $5.6 billion in 2002. Accordingly, the company would aim to boost total consolidated revenues from its four business affiliates -- Hitachi Data Systems, Hitachi Koki Imaging Solutions, Hitachi Construction Machinery and Hitachi Power Tools -- from $US78 billion to $94 billion in the same time, he said.

"We are not having a very good year this year," he conceded, although he did not disclose forecast sales revenues for this fiscal year.

Ohtsu said the electronics company, which planned to increase its global workforce by 7500, had allocated $US3 billion to worldwide mergers and acquisitions by 2002. The company will also invest substantially in systems integration, outsourcing, Internet and back-end broadcasting, and GSM telecommunications services, he said.

According to Hitachi, the company's revenues currently account for 1 per cent of Japan's gross domestic product return, with its employees accounting for more 1 one per cent of the country's population.


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