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Companies
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2000-06-07 19:03:00-04
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Hitachi may purchase US Software Firms
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Hitachi may purchase US Software Firms
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Hitachi Ltd is considering buying some US software firms in a move to back up its computer network business. Although Hitachi reported a group net profit of 16.9 billion yen for the business year ending March 31, a rebound from its first-ever loss of 336.9 billion yen the previous year, its computer sales were off, especially in the United States. In November, it was announced that Hitachi had set aside 300 billion yen for acquisitions, mainly foreign companies. This year its share price has dropped 15% due to the sluggish recovery in some of its traditional markets, such as mainframe computers, heavy machinery and electrical appliances. In May, a broad alliance with Mitsubishi Heavy Industries Ltd, a top producer of heavy machinery, was announced. Hitachi president Etsuhiko Shoyama said additional foreign ventures with domestic and foreign companies will occur, while at the same time Hitachi will seek further integration of the 1,600 companies in its group. In April, plans were announced for a merger of two financial units, Hitachi Credit Corp and Hitachi Leasing Ltd. In February, three wireless units agreed to merge. Shoyama rejected rumors that the company planned to follow Sony into the banking business. For the current business year, ending next March, Hitachi has forecast a consolidated net profit of 80 billion yen, a 373% increase from last year, on sales of 8.3 trillion yen, up 4%.
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