Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Hitachi, Ltd. (ADR)    HTHIY

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets

HITACHI ADR : Hitachi to absorb 5 listed units, seeks profit

share with twitter share with LinkedIn share with facebook
share via e-mail
07/27/2009 | 10:35am CEST

TOKYO (Reuters) - Hitachi Ltd <6501.T> plans to absorb five listed units, two sources close to the matter said on Monday, as the loss-making conglomerate tries to pool its sprawling resources to turn a profit.

By Kentaro Hamada and Mayumi Negishi

The news and hope that this would prelude further consolidation lifted shares of the Japanese maker of industrial electronics along with its subsidiaries.

Hitachi will launch tender offers as early as next month to buy the shares it doesn't already own in Hitachi Maxell <6810.T>, Hitachi Plant Technologies Ltd <1970.T>, Hitachi Information Systems Ltd <9741.T>, Hitachi Software Engineering Co <9694.T> and Hitachi Systems & Services Ltd <3735.T>, the sources said.

"(Hitachi) can't do everything and expect to do everything well," said one source, who declined to be named because the move has not been announced. "(It's) spread too thin and needs to consolidate more."

The move could cost Hitachi up to 300 billion yen ($3.2 billion), including a premium on the units' share price, the Nikkei business daily said.

Hitachi, a sprawling conglomerate with more than 900 group firms and 16 listed subsidiaries, is looking to revamp the management of its assets after losing about $8 billion in the past business year, a record for a Japanese manufacturer.

The company, which has forecast a net loss of $2.9 billion this year, could rake in more of its units' profits for its bottom line by taking full control of some companies.

"It's a first step," Deutsche Bank analyst Takeo Miyamoto said. "But this will not raise Hitachi's net profit that much, or change the fact that it still needs to raise funds."

Hitachi will announce the move this week, the Nikkei said.

Large losses have torn into Hitachi's capital base, halving its shareholders' equity ratio in one year, and it is likely to pay for the tender offer with a combination of cash and share swaps, analysts said.

Hitachi's shareholders' equity ratio stands at 11.2 percent -- roughly a quarter that of peers Sharp Corp <6753.T> and Panasonic Corp <6752.T> and half that of NEC Corp <6701.T>, prompting it to look into applying for state funds.

Shares of Hitachi rose 3.4 percent to 304 yen, outperforming a 1.5 percent rise in the benchmark Nikkei average <.N225>. Shares in Hitachi Maxell rose 16.5 percent, and other reported targets gained 15 percent to 18 percent.

Hitachi Maxell makes magnetic tapes and lithium-ion batteries, and runs a battery joint venture with Shin-Kobe Electric Machinery Co Ltd <6934.T>.

Hitachi Plant Technologies designs factory and air conditioning systems, flat panel making machines and nuclear power plants. Hitachi Information Systems is a data-processing company, Hitachi Software Engineering is a software developer, and Hitachi Systems & Services is a computer systems integrator.

Hitachi currently has stakes ranging from 51.2 percent to 68.1 percent in the five firms.

But the list of companies to be absorbed does not include some of Hitachi's top earners such as Hitachi Chemical <4217.T> and Hitachi Metals Ltd <5486.T>.

"If Hitachi does make these units wholly owned, it could next raise its stake in other group firms as well, both good and bad," said Yuichi Ishida, an analyst at Mizuho Investors Securities. "But cash is getting tight. Equity financing must be a tempting prospect."

Hitachi has already raised its stake in Hitachi Kokusai <6756.T> and Hitachi Koki Co <6581.T>.

Hitachi's new chief executive Takashi Kawamura, formerly the chairman of Hitachi Maxell and Hitachi Plant Technologies, has pledged to focus its resources on its IT networks and power systems businesses.

A Hitachi spokesman said nothing has been decided or announced by the company. He declined to comment on whether it was considering making the five firms wholly owned units.

($1=94.99 Yen)

(Additional reporting by Reiji Murai and Nathan Layne; Editing by Hugh Lawson)

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on HITACHI, LTD. (ADR)
01:45pHITACHI : Sole Source to Hitachi High Technologies America, Inc.
09:53aPASSWORD MANAGEMENT MARKET ANALYSIS, : By Focusing On Top Key Vendors: Google, M..
04/23EXCLUSIVE : Hitachi announce new sponsorship deal with Newcastle Falcons
04/21HITACHI METALS : Cable America Inc., Has Formed a New Medical Division
04/20HITACHI : Information contained in this news release is current as of the date o..
04/20HITACHI : Privileged User Password Management Market E2018 Avatier, Ca Technolog..
04/20HITACHI : Power Solutions Launches Knowledge Base Analytic
04/19HITACHI HIGH TECHNOLOGIES : Patent Issued for Charged Particle Beam Apparatus (U..
04/18HITACHI : Power Solutions Launches Knowledge Base Analytic
04/18HITACHI : Automotive Systems to Introduce Its Technology at the 2018 Beijing Int..
More news
Financials ( JPY)
Sales 2018 9 315 B
EBIT 2018 645 B
Net income 2018 337 B
Debt 2018 683 B
Yield 2018 1,88%
P/E ratio 2018 11,54
P/E ratio 2019 9,91
EV / Sales 2018 0,48x
EV / Sales 2019 0,45x
Capitalization 3 818 B
Duration : Period :
Hitachi, Ltd. (ADR) Technical Analysis Chart | HTHIY | US4335785071 | 4-Traders
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 17
Average target price 1 044  JPY
Spread / Average Target 30%
EPS Revisions
Toshiaki Higashihara Executive President, CEO & Director
Hiroaki Nakanishi Chairman
Mitsuaki Nishiyama Chief Financial Officer
Shinichiro Omori Chief Information & Transformation Officer
Norihiro Suzuki Chief Technology Officer
Sector and Competitors
1st jan.Capitalization (M$)
3M COMPANY-7.49%129 498
SIEMENS-6.60%112 472