JSM Financial: Japan’ largest electronics firm Hitachi to focus investment on infrastructure.

Hitachi announces plan to more than double its profits in the next three years.
May 31, 2010 - PRLog -- Hitachi, Japans largest electronics manufacturer which JSM Financial research shows turns 100 this year and consists of 900 firms has been refocusing its efforts to enhance its ability to compete globally with the likes of Germany’s Siemens and General Electric Co.

The giant has announced that it intends allocating about 70% of its $15.4 billion budget for capital spending and strategic investments to infrastructure-related businesses such as power plants, smart grids, batteries and railway systems.

The firm is on the lookout for mergers and acquisitions according to its President Hiroaki Nakanishi as the firm becomes more aggressive after years of cost-cutting due to the global economic crisis.

"We are clearly stating that we will be changing to offence from defence," JSM Financial believes Nakanishi, a 40-year Hitachi veteran recently said at a news conference. "Sales growth is not everything, but profit growth won't come without an increase in sales."

Hitachi has also indicated that it intends shedding some of its non-core businesses and that it expects its major business units to be reduces from the current forty over the next few years.

The global economic crisis forced the firm to accelerate its efforts to focus on more stable business areas such as chips in order to make itself less vulnerable to price volatility, JSM financial was informed. It also substantially cut its fixed and material procurement costs last business year, which together have enabled the firm to predict a net profit for this financial year, the first time in 5 years.

Share prices in Hitachi have remained relatively flat over the last few months.

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