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Hitachi Aims to Raise Profitability Beyond 5 Pct: Next Pres.

Posted on: Friday, 6 January 2006, 18:00 CST

Tokyo, Jan. 6 (Jiji Press)--Hitachi Ltd. intends to raise its operating profitability to 5 pct at an early date and achieve further growth through revitalizing slumping operations, President- designate Kazuo Furukawa said.

Achieving the 5 pct profitability target under the current business plan is the minimum requirement, Furukawa, vice president, said in a recent interview with Jiji Press.

The ratio of the major electronics maker's operating profit to sales presently stands at less than 2 pct on a consolidated basis.

Furukawa, who will become president in April, predicted that turnarounds in Hitachi's three sluggish operations--flat-panel televisions, displays and hard disk drives--will be in sight by the second half of 2006.

Furukawa said the company will shorten the development cycle for flat-panel TVs and introduce new models twice a year.

As for hard disk operations, Hitachi has already taken steps for revitalization, and the results will be seen in the second half of this year, he said.

He said the company will streamline categories of displays but improve the product lineup.

Furukawa said Hitachi has lagged behind Taiwanese and South Korean rivals in investment in production for flat-panels for TVs. Hitachi is now studying hard how to invest in this area, and it should not miss the right timing, Furukawa said.END

Source: Jiji Press English News Service

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