Hiroaki Nakanishi, the incoming president of Hitachi Ltd., said Thursday the electronics giant will further concentrate its resources in core operations to achieve its goal of returning to profit by the next financial year.
“The coverage of the current Hitachi group is too broad,” Nakanishi, the executive vice president who will become president April 1, said in an interview. “We will distance ourselves from areas where market fluctuations are volatile and where it is hard to generate stable profits.”
The conglomerate, with sprawling businesses from home appliances to railway systems to nuclear reactors, is expected to remain in the red for the current business year ending in March for the fourth consecutive year.
“We must return to profit in fiscal 2010 and we will be able to do it,” Nakanishi emphasized.
He added the company will accelerate globalization of its operations, particularly in emerging markets such as India and China, and aim to raise its overseas sales ratio to about 50 percent in the near-term.
In December, Hitachi raised about ¥300 billion in a public stock offering, which boosted its capital adequacy ratio from 10.9 percent at the end of September to 13 percent.
“If we look across the industry or if we are to compete globally, 13 percent is very insufficient,” the 63-year-old Nakanishi said, adding the company will soon aim to achieve 20 percent through restructuring efforts.
But he said the company is not currently considering raising additional capital, emphasizing that Hitachi will work to bolster its financial base by boosting its operating profit.
Nailer recall in U.S.
WASHINGTON (Kyodo) The U.S. Consumer Product Safety Commission said Thursday that Hitachi Koki Co. is voluntarily recalling its coil nailers for free repairs due to the risk of serious injury.
The CPSC, a governmental body, said about 50,000 coil nailers imported from Japan by Hitachi Koki U.S.A. Ltd. of Norcross, Ga., were sold in the United States between November 2002 and March 2006 for $350 to $400.
“The nailers could have a faulty feeder . . . posing a serious injury hazard to the user or bystanders,” it said.
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