FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July 2003
Commission File Number 1-8320
------
Hitachi, Ltd.
-------------
(Translation of registrant's name into English)
6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japan
-------------------------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F _____________
-----------
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): ________
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): ________
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes __________ No x
-----------
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-________
This report on Form 6-K contains the following:
1. Press release dated July 7, 2003 regarding Policy for Shares of NITTO DENKO
CORPORATION.
2. Press release dated July 9, 2003 regarding Sale of Shares of NITTO DENKO
CORPORATION.
3. Press release dated July 31, 2003 regarding consolidated financial results
for the first quarter of fiscal year ending March 31, 2004.
4. Press release dated July 31, 2003 regarding Issue of Stock Acquisition
Rights as Stock Options.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Hitachi, Ltd.
------------------------------------
(Registrant)
Date September 12, 2003 By /s/ Takashi Hatchoji
-------------------- ------------------------------------
Takashi Hatchoji
Vice President and Executive Officer
FOR IMMEDIATE RELEASE
Contact:
Atsushi Konno
Hitachi, Ltd.
+81-3-3258-2056
atsushi_konno@hdq.hitachi.co.jp
Policy for Shares of NITTO DENKO CORPORATION
Tokyo, July 7, 2003---Hitachi, Ltd. (TSE:6501 NYSE:HIT) today announced its
decision to sell shares of NITTO DENKO CORPORATION ("NITTO DENKO") that are
owned by subsidiary Chuo Shoji, Ltd. A portion of this company's NITTO DENKO
shares will be retained.
Under the Medium-Term Business Plan "i.e. Hitachi Plan II" that began in fiscal
2003, Hitachi is enacting substantial structural reforms in all areas of
business. These reforms involve the determination of ties between strategic
businesses and other activities. Measures will result in the withdrawal from
businesses that account for about 20% of consolidated sales so that Hitachi can
focus on achieving growth in strategic businesses.
In order to implement the business portfolio realignment and secure sufficient
funds for implementing its business strategy, Hitachi has decided to sell shares
of NITTO DENKO that are owned by subsidiary Chuo Shoji, Ltd. Hitachi plans to
sell the shares in a manner that minimizes the effect of the transaction on the
stock market. Although NITTO DENKO will no longer be an equity-method affiliate
of Hitachi as a result of the sale, the two companies will continue to maintain
a relationship as business partners.
- ### -
FOR IMMEDIATE RELEASE
Contact:
Atsushi Konno
Hitachi, Ltd.
+81-3-3258-2056
atsushi_konno@hdq.hitachi.co.jp
Sale of Shares of NITTO DENKO CORPORATION
Tokyo, July 9, 2003---Hitachi, Ltd. (TSE:6501 NYSE:HIT) today announced that a
Hitachi subsidiary (Chuo Shoji, Ltd.) has sold shares of NITTO DENKO CORPORATION
("NITTO DENKO"). This transaction was conducted in accordance with Hitachi's
stated policy of selling its holdings in this company.
1. Sale of the shares
(1) Number of shares sold
30,965,800 shares owned by Chuo Shoji, Ltd., a subsidiary.
Following the sale, Chuo Shoji, Ltd. owns 5,000,002 shares, which represent
approximately 3.1% of the outstanding shares of NITTO DENKO.
(2) Aggregate proceeds of shares sold
Approximately 120 billion yen
(3) Method of the sale
Sold through ToSTNeT 2 on the Tokyo Stock Exchange and block-trade
(4) Date of sale
July 8, 2003
2. Impact on the operating performance
Hitachi estimates that the sale of these shares will contribute approximately 84
billion yen to consolidated income before income taxes and approximately 35
billion yen to consolidated net income.
Hitachi is unable to determine at this time whether or not this transaction will
require a revision to the forecast for fiscal 2003 operating results as there
are a number of uncertainties, such as possible business portfolio reforms. A
revised forecast will be announced if necessary once estimates of the effects of
all applicable items have been finalized.
- ### -
FOR IMMEDIATE RELEASE
Contacts:
Japan: U.S.:
Machiko Ikenoya Matt Takahashi
Hitachi, Ltd. Hitachi America, Ltd.
+81-3-3258-2056 +1-650-244-7902
machiko_ikenoya@hdq.hitachi.co.jp masahiro.takahashi@hal.hitachi.com
China: U.K.:
Yuji Hoshino Kantaro Tanii
Hitachi (China) Investment, Ltd. Hitachi Europe Ltd.
+86-10-6590-8141 +44-1628-585379
y_hoshino@hitachi.com.cn kantaro.tanii@hitachi-eu.com
Hitachi Announces Consolidated Financial Results
for the First Quarter Ended June 30, 2003
Tokyo, July 31, 2003---Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its
consolidated financial results for the first quarter ended June 30, 2003.
During the quarter, consumption and production were slow in Asia, particularly
China, due to the effects of severe acute respiratory syndrome (SARS). In the
U.S., a rising jobless rate and other factors continued to fuel concerns about
the economic outlook. European economies, meanwhile, languished at the hands of
the strong euro and other negative trends. The Japanese economy, while showing
signs of an upturn in private-sector plant and equipment investment, was
characterized by sluggish export growth, as exports to the rest of Asia slowed,
and anemic personal spending.
Against this backdrop, Hitachi's consolidated net sales edged up 2%, to 1,895.9
billion yen (US$15,800 million), with major year-on-year changes in Information
& Telecommunication Systems, Electronic Devices and other segments due to the
effects of ongoing business portfolio realignment by the Hitachi Group. Hitachi
posted an operating loss of 33.7 billion yen (US$281 million), compared with
operating income of 13.6 billion yen (US$114 million) in the same quarter of the
previous fiscal year.
-2-
By segment, Information & Telecommunication Systems sales increased 11%, to
446.9 billion yen (US$3,724 million). Software sales were weak in a sluggish
Japanese economy, but the addition of sales from the hard disk drive (HDD)
operations acquired from IBM Corporation, higher sales of base stations for
wireless communications infrastructure and other factors lifted overall segment
sales above the previous year. The segment recorded an operating loss of 26.7
billion yen (US$223 million), compared with an operating loss of 5.8 billion yen
(US$49 million) in the previous year, due mainly to a loss in HDD operations.
In Electronic Devices, sales dropped 26% year on year, to 277.6 billion yen
(US$2,313 million). Sales fell sharply in semiconductor operations due in part
to the April 2003 transfer of most of this business to equity-method affiliate
Renesas Technology Corp., a joint venture with Mitsubishi Electric Corporation.
In displays, while sales of small and medium-size TFT LCDs for mobile phones
were brisk, sales of large-size TFT LCDs were soft. The segment recorded an
operating loss of 6.9 billion yen (US$58 million), compared with operating
income of 2.3 billion yen (US$20 million) in the previous year. This was
attributable to a sharp deterioration in profits from large-size TFT LCDs in
display operations due to lower prices year on year.
In Power & Industrial Systems, sales rose 2%, to 494.5 billion yen (US$4,121
million). Sales of power generation equipment continued to languish and sales of
infrastructure and other facilities to the public sector declined due to
budgetary constraints. On the other hand, sales of construction machinery
increased in China and other overseas markets, and sales of automotive products
were markedly higher in line with the inclusion in consolidated results of the
former Unisia JECS Corporation (now Hitachi Unisia Automotive, Ltd.), which
become a subsidiary in October 2002. Segment operating income dropped 60% year
on year, to 2.9 billion yen (US$24 million), despite a dramatic improvement in
earnings from construction machinery. This decline reflected a deterioration in
profitability in power generation equipment and public-works facilities, and
lower earnings from elevators and escalators due to lower prices for maintenance
services.
-3-
In Digital Media & Consumer Products, segment sales declined 3%, to 295.9
billion yen (US$2,466 million). While plasma TV and mobile phone sales rose,
sales of large home appliances declined to falling sales prices amid soft demand
and a deflationary environment in Japan. At Hitachi Maxell, Ltd., optical media
sales remained healthy. The segment recorded an operating loss of 0.4 billion
yen (US$4 million), compared with operating income of 6.5 billion yen (US$55
million) in the previous year. This was mainly the result of the effect of lower
sales prices, particularly in respect of large home appliances, exceeding the
benefits of cost cutting because of deflation.
In High Functional Materials & Components, segment sales rose 2%, to 305.5
billion yen (US$2,547 million). At Hitachi Cable, Ltd., sales were strong for
wires and cables, such as fiber-optic cables for domestic communications
carriers, as well as for information systems and electronic components. At
Hitachi Chemical Co., Ltd., sales were healthy of materials for electronic
components, industrial materials, housing equipment and environmental
facilities, although sales of printed circuit boards and related materials
declined. At Hitachi Metals, Ltd., sales were firm for automotive-related
components. The segment saw operating income decline 4%, to 4.4 billion yen
(US$37 million).
In Logistics, Services & Others, segment sales decreased 10%, to 307.2 billion
yen (US$2,560 million), despite strong sales from the logistics solutions
business at Hitachi Transport System, Ltd. Overseas sales companies saw sales
decline due to the transfer of semiconductors sales operations to the newly
established Renesas Technology, and the transfer of HDD sales operations to
Hitachi Global Storage Technologies. The segment recorded an operating loss of
3.0 billion yen (US$26 million), compared with operating income of 1.7 billion
yen (US$14 million) in the previous year.
In Financial Services, segment sales decreased 7%, to 133.1 billion yen
(US$1,110 million) because of the effect of low interest rates and a declining
volume of automobile loans to individuals. Segment operating income declined
59%, to 4.1 billion yen (US$35 million).
Other income declined 32%, to 17.3 billion yen (US$144 million) due to lower
interest income and dividends received as well as a decline in gains on the sale
of marketable securities and other factors. Meanwhile, other deductions declined
67%, to 14.5 billion yen (US$121 million) due to exchange gains, which
contrasted with exchange losses recorded in the previous year.
-4-
As a result, Hitachi recorded a loss before income taxes and minority interests
of 30.9 billion yen (US$258 million), and after 3.2 billion yen (US$27 million)
in income taxes, loss before minority interests of 34.1 billion yen (US$285
million). The net loss was 38.4 billion yen (US$320 million), 26.7 billion yen
(US$223 million) more than in the previous year.
Financial Position
Operating activities used net cash of 22.8 billion yen (US$191 million), an
increase of 4.6 billion yen (US$39 million)compared with the previous year. The
main reason was a large decrease in payables.
Investing activities used net cash of 148.7 billion yen (US$1,239 million), 23.0
billion yen (US$192 million) less than in the previous year, due to an increase
in collection of investment in leases and other factors.
Free cash flows, the sum of cash flows from operating activities and investing
activities, amounted to negative 171.6 billion yen (US$1,430 million), an
improvement of 18.3 billion yen (US$153 million) from the previous year.
Financing activities provided net cash of 17.2 billion yen (US$143 million),
compared with net cash used of 19.3 billion yen (US$161 million) in the previous
year. This mainly reflects cash inflows from the issue of bonds for refinancing
purposes in May 2003, which outweighed cash outflows for the purchase of own
shares the same month.
As a result, cash and cash equivalents as of June 30, 2003 were 674.5 billion
yen (US$5,622 million), a reduction of 153.5 billion yen (US$1,280 million)
during the first quarter.
Debt on June 30, 2003 stood at 2,871.1 billion yen (US$23,926 million), 30.5
billion yen (US$255 million) more than at March 31, 2003 as a result of the
issuance of bonds in May.
Capital investment on a completion basis rose 3%, to 180.2 billion yen (US$1,502
million), while depreciation decreased 7%, to 107.8 billion yen (US$898
million). The Company spent 78.7 billion yen (US$656 million) on research and
development, a decrease of 13% from the previous year. R&D expenditures as a
percentage of net sales were 4.2%.
All figures are converted at the rate of 120 yen = U.S.$1, the approximate
exchange rate on the Tokyo Foreign Exchange Market as of June 30, 2003.
-5-
Outlook for the First Half of Fiscal 2003
The first-quarter results were lower than in the corresponding quarter of the
previous year due to losses in HDD operations acquired from IBM Corporation and
other factors. Lingering uncertainty in the second quarter concerning the
outlook for the U.S. and other economies around the world has created an
unpredictable operating environment for Hitachi.
Hitachi has revised its projections for the first half of fiscal 2003 due to
such factors as the selling of its shares in affiliate Nitto Denko Corporation
in July 2003.
There are no changes to Hitachi's forecasts for the fiscal year ending March 31,
2004.
The interim projections assume an exchange rate of 120 yen to the U.S. dollar,
the same rate that was assumed in April this year.
----------------------------------------------- --------------------------------
Net sales 4,000 billion yen (year-on-year increase of 2%)
(US$33,333 million)
----------------------------------------------- --------------------------------
Operating income 15 billion yen (year-on-year decrease of 76%)
(US$125 million)
----------------------------------------------- --------------------------------
Income before income taxes 50 billion yen (year-on-year increase of 49%)
and minority interests (US$417 million)
----------------------------------------------- --------------------------------
Loss before minority 17 billion yen ( - %)
interests (US$142 million)
----------------------------------------------- --------------------------------
Net loss 30 billion yen ( - %)
(US$250 million)
----------------------------------------------- --------------------------------
-6-
Cautionary Statement
Certain statements contained in this document may constitute forward-looking
statements which reflect management's current views with respect to certain
future events and financial performance based on certain assumptions and include
any statement that does not directly relate to any historical or current fact.
Words such as "anticipate," "believe," "expect," "estimate," "intend," "plan,"
"project" and similar expressions which indicate future events and trends may
identify forward-looking statements. Actual results may differ materially from
those projected or implied in the forward-looking statements and from historical
trends. Further, certain forward-looking statements are based upon assumptions
of future events which may not prove to be accurate.
Factors that could cause actual results to differ materially from those
projected or implied in any forward-looking statements and from historical
trends include, but are not limited to:
- rapid technological change, particularly in the Information &
Telecommunication Systems segment and Electronic Devices segment;
- uncertainty as to Hitachi's ability to continue to develop and market
products that incorporate new technology on a timely and cost-effective
basis and to achieve market acceptance for such products;
- fluctuations in product demand and industry capacity, particularly in the
Information & Telecommunication Systems segment, Electronic Devices segment
and Digital Media & Consumer Products segment;
- increasing commoditization of information technology products, and
intensifying price competition in the market for such products;
- fluctuations in rates of exchange for the yen and other currencies in which
Hitachi makes significant sales or in which Hitachi's assets and liabilities
are denominated, particularly between the yen and the U.S. dollar;
- uncertainty as to Hitachi's ability to access, or access on favorable terms,
liquidity or long-term financing, particularly in the context of limited
credit availability currently prevailing in Japan;
- uncertainty as to Hitachi's ability to implement measures to reduce the
potential negative impact of fluctuations in product demand and/or exchange
rates;
- general economic conditions and the regulatory and trade environment of
Hitachi's major markets, particularly, the United States, Japan and
elsewhere in Asia, including, without limitation, continued stagnation or
deterioration of the Japanese economy, or direct or indirect restriction by
other nations of imports;
- uncertainty as to Hitachi's access to, or protection for, certain
intellectual property rights, particularly those related to electronics and
data processing technologies;
- uncertainty as to the success of alliances upon which Hitachi depends, some
of which Hitachi may not control, with other corporations in the design and
development of certain key products; and
- uncertainty as to general market price levels for equity securities in
Japan, declines in which may require Hitachi to write-down equity securities
it holds.
These factors listed above are not exclusive and are in addition to other
factors that are stated or indicated elsewhere in this report, or in other
materials published by the Company.
-7-
Hitachi, Ltd. and Subsidiaries
Consolidated Financial Statements
for the First Quarter Ended June 30, 2003
The consolidated financial statements presented herein are expressed in yen and,
solely for the convenience of the reader, have been translated into United
States dollars at the rate of 120 yen = U.S.$1, the approximate exchange rate
prevailing on the Tokyo Foreign Exchange Market as of June 30, 2003.
Summary
In millions of yen and U.S. dollars, except Net income per share (6) and Net
income per American Depositary Share (7).
------------------------------------------------------------------------------------------------------------------------
Three months ended June 30
-----------------------------------------------------------
Yen (A)/(B) U.S. Dollars
(millions) X100 (millions)
------------------------------- ----------------
2003 (A) 2002 (B) (%) 2003
------------------------------------------------------------------------------------------------------------------------
1. Net sales 1,895,963 1,865,238 102 15,800
--------------------------------------------------------------------------------------------------------------------
2. Operating income (loss) (33,733) 13,692 - (281)
--------------------------------------------------------------------------------------------------------------------
3. Income (loss) before income taxes and minority interests (30,919) (5,202) - (258)
--------------------------------------------------------------------------------------------------------------------
4. Income (loss) before minority interests (34,162) (8,922) - (285)
--------------------------------------------------------------------------------------------------------------------
5. Net income (loss) (38,402) (11,603) - (320)
--------------------------------------------------------------------------------------------------------------------
6. Net income (loss) per share
Basic (11.57) (3.48) - (0.10)
Diluted - - - -
--------------------------------------------------------------------------------------------------------------------
7. Net income (loss) per ADS (representing 10 shares)
Basic (116) (35) - (0.97)
Diluted - - - -
------------------------------------------------------------------------------------------------------------------------
Notes: 1. First-quarter figures for fiscal 2002 have been restated due to the
adoption of EITF Issue No. 03-2.
"Accounting for the Transfer to the Japanese Government of the
Substitutional Portion of Employee Pension Fund Liabilities"
(Emerging Issues Task Force (EITF), January 2003).
2. Segment Information and operating income (loss) are presented in
accordance with financial reporting principles and practices
generally accepted in Japan.
3. The figures are for 968 consolidated subsidiaries and 160
equity-method affiliates.
4. Consolidated quarterly figures are unaudited.
-8-
Consolidated Statements of Income (Unaudited)
---------------------------------------------------------------------------------------------------------
Three months ended June 30
--------------------------------------------------------------
Yen (A)/(B) U.S. Dollars
(millions) X100 (millions)
------------------------------------ --------------
2003 (A) 2002 (B) (%) 2003
---------------------------------------------------------------------------------------------------------
Net sales 1,895,963 1,865,238 102 15,800
---------------------------------------------------------------------------------------------------------
Cost of sales 1,445,910 1,409,617 103 12,049
---------------------------------------------------------------------------------------------------------
Selling, general and 483,786 441,929 109 4,032
administrative expenses
---------------------------------------------------------------------------------------------------------
Operating income (loss) (33,733) 13,692 - (281)
---------------------------------------------------------------------------------------------------------
Other income 17,321 25,485 68 144
(Interest and dividends) 7,543 9,220 82 63
(Other) 9,778 16,265 60 81
---------------------------------------------------------------------------------------------------------
Other deductions 14,507 44,379 33 121
(Interest charges) 7,941 8,274 96 66
(Other) 6,566 36,105 18 55
---------------------------------------------------------------------------------------------------------
Income (loss) before income taxes (30,919) (5,202) - (258)
and minority interests
---------------------------------------------------------------------------------------------------------
Income taxes 3,243 3,720 87 27
---------------------------------------------------------------------------------------------------------
Income (loss) before (34,162) (8,922) - (285)
minority interests
---------------------------------------------------------------------------------------------------------
Minority interests 4,240 2,681 158 35
---------------------------------------------------------------------------------------------------------
Net income (loss) (38,402) (11,603) - (320)
---------------------------------------------------------------------------------------------------------
-9-
Consolidated Balance Sheets (Unaudited)
---------------------------------------------------------------------------------------------------------------
Yen (A)/(B) U.S. Dollars
(millions) X100 (millions)
-------------------------------- --------------
As of June 30, As of March 31, As of June 30,
2003 (A) 2002 (B) (%) 2003
----------------------------------------------------------------------------------------------------------------
Assets 9,983,169 10,179,389 98 83,193
----------------------------------------------------------------------------------------------------------------
Current assets 5,169,090 5,193,465 100 43,076
Cash and cash equivalents 674,598 828,171 81 5,622
Short-term investments 216,740 186,972 116 1,806
Trade receivables (Notes and Accounts) 1,952,067 2,057,227 95 16,267
Investment in leases 490,969 437,076 112 4,091
Inventories 1,253,542 1,187,529 106 10,446
Other current assets 581,174 496,490 117 4,843
----------------------------------------------------------------------------------------------------------------
Investments and advances 853,050 726,442 117 7,109
----------------------------------------------------------------------------------------------------------------
Property, plant and equipment 2,364,807 2,601,050 91 19,707
----------------------------------------------------------------------------------------------------------------
Other assets 1,596,222 1,658,432 96 13,302
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
Liabilities and stockholders' equity 9,983,169 10,179,389 98 83,193
----------------------------------------------------------------------------------------------------------------
Current liabilities 3,872,009 4,005,228 97 32,267
Short-term debt and current installments
of long-term debt 1,276,024 1,328,446 96 10,634
Trade payables (Notes and Accounts) 1,134,657 1,212,064 94 9,455
Other current liabilities 1,461,328 1,464,718 100 12,178
----------------------------------------------------------------------------------------------------------------
Noncurrent liabilities 3,590,733 3,569,371 101 29,923
Long-term debt 1,595,151 1,512,152 105 13,293
Other liabilities 1,995,582 2,057,219 97 16,630
----------------------------------------------------------------------------------------------------------------
Minority interests 750,616 751,578 100 6,255
----------------------------------------------------------------------------------------------------------------
Stockholders' equity 1,769,811 1,853,212 95 14,748
Common stock 282,032 282,032 100 2,350
Capital surplus 548,280 562,214 98 4,569
Legal reserve and retained earnings 1,717,075 1,766,338 97 14,309
Accumulated other comprehensive
income (loss) (745,714) (755,525) - (6,214)
(Foreign currency translation adjustments) (59,220) (60,948) - (494)
(Minimum pension liability adjustments) (700,143) (698,916) - (5,835)
(Net unrealized holding gain on
available-for-sale securities) 14,140 4,874 290 118
(Cash flow hedges) (491) (535) - (4)
Treasury stock (31,862) (1,847) - (266)
----------------------------------------------------------------------------------------------------------------
-10-
Consolidated Statements of Cash Flows (Unaudited)
---------------------------------------------------------------------------------------------------------
Three months ended June 30
-----------------------------------------
Yen U.S. Dollars
(millions) (millions)
-----------------------------------------
2003 2002 2003
---------------------------------------------------------------------------------------------------------
Cash flows from operating activities
Net income (loss) (38,402) (11,603) (320)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities
Depreciation 107,806 116,250 898
Decrease in receivables and inventories 43,447 119,941 362
Decrease in payables (93,683) (46,217) (781)
Other (42,059) (196,576) (350)
-----------------------------------------------------------------------------------------------------
Net cash used in operating activities (22,891) (18,205) (191)
Cash flows from investing activities
Increase in short-term investments (29,675) (45,926) (247)
Purchase of rental assets and other properties, net (169,102) (157,163) (1,409)
Purchase of investments
and subsidiaries' common stock, net 9,987 28,744 83
Collection of investment in leases 72,115 47,904 601
Other (32,046) (45,352) (267)
-----------------------------------------------------------------------------------------------------
Net cash used in investing activities (148,721) (171,793) (1,239)
Cash flows from financing activities
Increase (decrease) in interest-bearing debt 63,150 (14,554) 526
Dividends paid to stockholders (9,357) (71) (78)
Dividends paid to minority stockholders of subsidiaries (6,574) (5,536) (55)
Other (30,013) 828 (250)
-----------------------------------------------------------------------------------------------------
Net cash provided by (used in) financing activities 17,206 (19,333) 143
Effect of exchange rate changes on cash and cash equivalents 833 (20,186) 7
-----------------------------------------
Net decrease in cash and cash equivalents (153,573) (229,517) (1,280)
Cash and cash equivalents at beginning of year 828,171 1,029,374 6,901
-----------------------------------------
Cash and cash equivalents as of June 30 674,598 799,857 5,622
=========================================
---------------------------------------------------------------------------------------------------------
- 11 -
Segment Information (Unaudited)
(1) Industry Segments
------------------------------------------------------------------------------------------------------------------------------
Three months ended June 30
-------------------------------------------------------------------
Yen (A)/(B) U.S. Dollars
(millions) X100 (millions)
----------------------------------- ------------------
2003 (A) 2002 (B) (%) 2003
------------------------------------------------------------------------------------------------------------------------------
Information & Telecommunication 446,939 404,394 111 3,724
Systems 20% 17%
-----------------------------------------------------------------------------------------------------------
Electronic Devices 277,615 375,207 74 2,313
12% 16%
-----------------------------------------------------------------------------------------------------------
Power & Industrial Systems 494,571 482,984 102 4,121
22% 21%
-----------------------------------------------------------------------------------------------------------
Digital Media & Consumer 295,941 303,608 97 2,466
Products 13% 13%
-----------------------------------------------------------------------------------------------------------
Sales High Functional Materials 305,585 300,417 102 2,547
& Components 13% 13%
-----------------------------------------------------------------------------------------------------------
Logistics, Services & Others 307,242 340,299 90 2,560
14% 14%
-----------------------------------------------------------------------------------------------------------
Financial Services 133,176 143,765 93 1,110
6% 6%
-----------------------------------------------------------------------------------------------------------
Subtotal 2,261,069 2,350,674 96 18,842
100% 100%
-----------------------------------------------------------------------------------------------------------
Eliminations & Corporate items (365,106) (485,436) - (3,043)
-----------------------------------------------------------------------------------------------------------
Total 1,895,963 1,865,238 102 15,800
==============================================================================================================================
Information & Telecommunication (26,754) (5,820) - (223)
Systems - -
-----------------------------------------------------------------------------------------------------------
Electronic Devices (6,995) 2,355 - (58)
- -
-----------------------------------------------------------------------------------------------------------
Power & Industrial Systems 2,936 7,411 40 24
- -
-----------------------------------------------------------------------------------------------------------
Digital Media & Consumer (459) 6,569 - (4)
Products - -
-----------------------------------------------------------------------------------------------------------
Operating High Functional Materials 4,404 4,584 96 37
income (loss) & Components - -
-----------------------------------------------------------------------------------------------------------
Logistics, Services & Others (3,079) 1,730 - (26)
- -
-----------------------------------------------------------------------------------------------------------
Financial Services 4,171 10,062 41 35
- -
-----------------------------------------------------------------------------------------------------------
Subtotal (25,776) 26,891 - (215)
- -
-----------------------------------------------------------------------------------------------------------
Eliminations & Corporate items (7,957) (13,199) - (66)
-----------------------------------------------------------------------------------------------------------
Total (33,733) 13,692 - (281)
------------------------------------------------------------------------------------------------------------------------------
Note: Net sales by industry segment include intersegment transactions.
- 12 -
(2) Sales by Market
--------------------------------------------------------------------------------------------
Three months ended June 30
------------------------------------------------------------
Yen (A)/(B) U.S. Dollars
(millions) X100 (millions)
------------------------------- ---------------
2003 (A) 2002 (B) (%) 2003
--------------------------------------------------------------------------------------------
Japan 1,198,041 1,230,450 97 9,984
63% 66%
--------------------------------------------------------------------------------------------
Asia 300,443 238,197 126 2,504
16% 13%
---------------------------------------------------------------------------------------
North America 213,149 217,706 98 1,776
11% 12%
---------------------------------------------------------------------------------------
Europe 133,602 134,654 99 1,113
7% 7%
---------------------------------------------------------------------------------------
Other Areas 50,728 44,231 115 423
3% 2%
---------------------------------------------------------------------------------------
Outside Japan 697,922 634,788 110 5,816
37% 34%
--------------------------------------------------------------------------------------------
Total 1,895,963 1,865,238 102 15,800
100% 100%
--------------------------------------------------------------------------------------------
# # #
July 31, 2003
Hitachi, Ltd.
Supplementary Information
for the First Quarter Ended June 30, 2003 (Consolidated basis)
1. Summary (Billions of yen)
---------------------------------------------------------------------------------------------
Three months ended June 30
----------------------------------------------------
2002 2003
------------ ------------
(A) (A)/FY2001 (B) (B)/(A)
---------------------------------------------------------------------------------------------
Average exchange rate (yen / U.S.$) 124 - 119 -
---------------------------------------------------------------------------------------------
Capital investment (Completion basis) 175.7 73% 180.2 103%
---------------------------------------------------------------------------------------------
Leasing assets 107.7 82% 119.8 111%
.........................................................................................
Other 67.9 63% 60.4 89%
---------------------------------------------------------------------------------------------
Depreciation 116.2 88% 107.8 93%
---------------------------------------------------------------------------------------------
Leasing assets 22.2 118% 26.9 121%
........................................................................................
Other 94.0 83% 80.8 86%
---------------------------------------------------------------------------------------------
R&D expenditure 90.6 92% 78.7 87%
---------------------------------------------------------------------------------------------
Percentage of net sales 4.9% - 4.2% -
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
As of March 31, 2003 As of June 30, 2003
---------------------------------------------------------------------------------------------
Stockholders' equity per share (yen) 550.76 536.58
---------------------------------------------------------------------------------------------
Cash & cash equivalents, Short-term 1,015.1 891.3
investments (Billions of yen)
---------------------------------------------------------------------------------------------
Interest-bearing debt (Billions of yen) 2,840.5 2,871.1
---------------------------------------------------------------------------------------------
Number of employees 339,572 326,303
---------------------------------------------------------------------------------------------
Japan 256,085 245,560
.........................................................................................
Overseas 83,487 80,743
---------------------------------------------------------------------------------------------
Number of consolidated subsidiaries 1,112 968
---------------------------------------------------------------------------------------------
Japan 708 570
.........................................................................................
Overseas 404 398
---------------------------------------------------------------------------------------------
2. Overseas sales by industry segment (Billions of yen)
---------------------------------------------------------------------------------------------
Three months ended June 30
-----------------------------------------------------
2002 2003
------------ ------------
(A) (A)/FY2001 (B) (B)/(A)
---------------------------------------------------------------------------------------------
Information & Telecommunication 61.2 109% 142.0 232%
Systems
---------------------------------------------------------------------------------------------
Electronic Devices 127.0 94% 105.5 83%
---------------------------------------------------------------------------------------------
Power & Industrial Systems 92.8 96% 125.5 135%
---------------------------------------------------------------------------------------------
Digital Media & Consumer Products 124.1 109% 121.6 98%
---------------------------------------------------------------------------------------------
High Functional Materials 78.5 91% 77.4 99%
& Components
---------------------------------------------------------------------------------------------
Logistics, Services & Others 141.8 117% 115.9 82%
---------------------------------------------------------------------------------------------
Financial Services 9.1 97% 9.6 105%
---------------------------------------------------------------------------------------------
Eliminations & Corporate items 0 - 0 -
---------------------------------------------------------------------------------------------
Total 634.7 103% 697.9 110%
---------------------------------------------------------------------------------------------
-###-
July 31, 2003
Hitachi, Ltd.
Supplementary Information on Information & Telecommunication Systems and
Displays
Notes: 1. Segment Information and operating income (loss) are presented in
accordance with financial reporting principles and practices generally
accepted in Japan.
1. Information & Telecommunication Systems
(1) Sales and operating income (loss) by product sector (billions of yen)
--------------------------------------------------------------------------------
Three months ended June 30
----------------------------------------------------
2002(A) 2003 (B) (B) / (A) X 100
--------------------------------------------------------------------------------
Sales 404.3 446.9 111%
--------------------------------------------------------------------------------
Software & Services 191.8 188.9 98%
------------------------------------------------------------------------------
Hardware 212.5 258.0 121%
--------------------------------------------------------------------------------
Operating income (loss) (5.8) (26.7) -
--------------------------------------------------------------------------------
(2) Sales by product sector (billions of yen)
--------------------------------------------------------------------------------
Three months ended June 30
----------------------------------------------------
2002(A) 2003 (B) (B) / (A) X 100
--------------------------------------------------------------------------------
Sales 404.3 446.9 111%
------------------------------------------------------------------------------
Software & Services 191.8 188.9 98%
----------------------------------------------------------------------------
Software 42.1 37.0 88%
----------------------------------------------------------------------------
Services 149.7 151.9 101%
------------------------------------------------------------------------------
Hardware 212.5 258.0 121%
----------------------------------------------------------------------------
Storage 82.1 129.9 158%
----------------------------------------------------------------------------
Servers 29.0 28.6 99%
----------------------------------------------------------------------------
PCs 32.9 29.3 89%
----------------------------------------------------------------------------
Telecommunication 18.4 29.5 160%
----------------------------------------------------------------------------
Others 50.1 40.7 81%
--------------------------------------------------------------------------------
Notes: 2. Figures for each product exclude intra-segment transactions.
3. Figures for Storage include disk array subsystems, hard disk drives,
etc.
4. Figures for Servers include supercomputers, general-purpose computers,
UNIX servers, etc.
5. Figures for PCs include PC servers and client PCs.
(3) SAN/NAS Storage Solutions (billions of yen)
--------------------------------------------------------------------------------
Three months ended June 30
----------------------------------------------------
2002(A) 2003 (B) (B) / (A) X 100
--------------------------------------------------------------------------------
Sales 60.0 62.0 103%
--------------------------------------------------------------------------------
(4) Hard disk drives (*6)(*7)
--------------------------------------------------------------------------------------------------------
Shipment Period Three months ended Three months ended Three months ended
June 2002 March 2003(*8) June 2003(*9)
(Period recorded for consolidated (Three months ended (Three months ended (Three months ending
accounting purposes) June 2002) June 2003) September 2003)
------------
Reference
--------------------------------------------------------------------------------------------------------
Sales (billions of yen) 28.3 77.3 104.1 115.6
--------------------------------------------------------------------------------------------------------
Shipments (million units) 2.1 6.9 9.3 9.8
------------------------------------------------------------------------------------------------------
Mobiles 1.8 3.5 5.6 5.6
------------------------------------------------------------------------------------------------------
Servers 0.3 0.4 0.7 0.8
------------------------------------------------------------------------------------------------------
Desktops - 2.9 2.9 3.4
------------------------------------------------------------------------------------------------------
Emerging - 0.1 0.1 0.1
--------------------------------------------------------------------------------------------------------
Notes: 6. Figures include intra-segment transactions.
7. On December 31, 2002, Hitachi purchased majority ownership in a
company to which IBM Corporation's hard disk drive operations had been
transferred. On January 1, 2003, the company began operating as
Hitachi Global Storage Technologies (HGST).
8. HGST has a December 31 year-end and Hitachi, Ltd. has a March 31
year-end. The first-quarter consolidated results include the results
of HGST for the three-month period from January 1, 2003 through March
31, 2003. Meanwhile, the results of Hitachi, Ltd.'s HDD operations for
the period from January 1, 2003 through March 31, 2003 were included
in Hitachi's consolidated financial results for the year ended March
31, 2003. On April 1, 2003, Hitachi, Ltd.'s HDD operations were
integrated in HGST. The figures provided for reference purposes
represent the combined sales and shipments of Hitachi, Ltd.'s HDD
operations and HGST's operations prior to integration, and are shown
to give an overall picture of the Hitachi's HDD operations for the
three-month period ended March 31, 2003.
9. Results for HDD operations in the period from April 1, 2003 through
June 30, 2003 will be included in the Company's fiscal 2003
second-quarter results.
2.Displays
(1) Sales and operating income (loss) (billions of yen)
--------------------------------------------------------------------------------
Three months ended June 30
-----------------------------------------------
2002 (A) 2003 (B) (B) / (A) X 100
--------------------------------------------------------------------------------
Sales 57.4 53.5 93%
--------------------------------------------------------------------------------
Operating income (loss) 6.7 (6.9) -
--------------------------------------------------------------------------------
(2) LCD sales (billions of yen)
--------------------------------------------------------------------------------
Three months ended June 30
-----------------------------------------------
2002 (A) 2003 (B) (B) / (A) X 100
--------------------------------------------------------------------------------
Sales 47.0 47.0 100%
------------------------------------------------------------------------------
Large-size LCDs 36.0 26.0 72%
------------------------------------------------------------------------------
Small and medium-size LCDs 11.0 21.0 191%
--------------------------------------------------------------------------------
# # #
FOR IMMEDIATE RELEASE
Contact:
Atsushi Konno
Hitachi, Ltd.
+81-3-3258-2056
atsushi_konno@hdq.hitachi.co.jp
Issue of Stock Acquisition Rights as Stock Options
Tokyo, July 31, 2003 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501, the "Company")
today announced that the details of stock acquisition rights to be issued as
stock options, resolved at the 134th Ordinary General Meeting of Shareholders
held June 25, 2003, have been decided on as follows.
1. Date of Issue of stock acquisition rights (the "Rights")
July 31, 2003
2. Total number of the Rights to be issued
1,305 Rights
3. Class and number of shares to be issued upon exercise of the Rights
1,305,000 shares of the Company's common stock(1,000 shares per Right)
4. Issue price of the Rights
No consideration shall be paid.
5. Amount to be paid upon exercise of the Rights
561 yen per share
6. Total amount of the Company's common stock to be issued or transferred upon
exercise of all the Rights
732,105,000 yen
7. Period during which the Rights may be exercised
From August 1, 2004 through July 31, 2007
8. Amount to be transferred to stated capital out of the issue price of the
shares to be issued upon exercise of the Rights
281 yen per share
9. Qualified persons to be allocated the Rights
85 persons in total consisting of Directors, Executive Officers, Corporate
Officers and Fellows of the Company
- ### -