Hitachi : aims double-digit margin by 2021, not interested in GE assets - CEO
December 18, 2017 at 02:30 am EST
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TOKYO (Reuters) - The head of Japan's Hitachi Ltd (>> Hitachi, Ltd.) said the company was aiming to improve its operating margin to double digits by fiscal 2021 from current levels of around 7 percent.
TOKYO (Reuters) - The head of Japan's Hitachi Ltd (>> Hitachi, Ltd.) said the company was aiming to improve its operating margin to double digits by fiscal 2021 from current levels of around 7 percent.
Chief Executive Toshiaki Higashihara, in an interview to reporters, also said Hitachi was not interested in assets being put up for sale by General Electric (>> General Electric Company).
The U.S. conglomerate wants to get rid of at least $20 billion of assets through sales, spin-offs or other means to turn itself into a smaller, more focused company.
(Reporting by Kentaro Hamada; Editing by Vyas Mohan)
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
HITACHI, LTD. 
