Hitachi Koki Releases Summary of Financial Results for the Half Year ended September 30, 2002
October 29, 2002
Company name: Hitachi Koki Co., Ltd.
Securities code: 6581
Stock market listings: Tokyo Stock Exchange, Osaka Securities Exchange
Headquarters: Tokyo
(1) Consolidated business results (Amounts less than ¥1 million have been omitted.)
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Sales |
Operating income |
Ordinary income |
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interim period Fiscal 2002 interim period |
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Fiscal 2002 |
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Interim net income (Period under review) |
Interim net income per share (Period under review) |
Interim net income per share (Period under review) after adjustment for latent shares |
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interim period Fiscal 2002 interim period |
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Fiscal 2002 |
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| Notes: | |
| 1) | Investment
income and losses resulting from the application of the equity
method: Fiscal 2003 interim period: - ¥56 million Fiscal 2002 interim period: - ¥8 million Fiscal 2002: - ¥78 million |
| 2) | Average
number of shares during period: (Consolidated) Fiscal 2003 interim period: 121,885,532 shares Fiscal 2002 interim period: 123,070,105 shares Fiscal 2002: 123,068,219 shares |
| 3) | Changes in accounting procedures: None |
| 4) | Percentages for net sales, operating income, ordinary income, and interim net income (period under review) are changes from the interim period in the previous fiscal year. |
(2) Consolidated Financial Condition
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Total assets |
Shareholders' equity |
Shareholders' equity ratio |
Shareholders' equity per share | ||||||||
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Fiscal 2002 |
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| Note: |
| Number
of shares issued at end of period: (Consolidated) Fiscal 2003 interim period: 120,475,919 shares Fiscal 2002 interim period: 123,072,475 shares Fiscal 2002: 123,059,684 shares |
(3) Consolidated Cash Flows
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Cash flows from operating activities |
Cash flows from investing activities |
Cash flows from financing activities |
Cash and cash equivalents at end of period | ||||||||
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Fiscal 2002 |
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(4) Matters related to the scope of consolidation and the application of equity method
Number of consolidated subsidiaries: 27
Number of non-consolidated subsidiaries accounted for by the equity method: 1
Number of affiliated companies accounted for by the equity method: 1
(5) Changes in the scope of consolidation and the application of equity method
Newly consolidated companies: 0
Companies removed from consolidation: 1
Companies newly accounted for by the equity method: 1
Companies no longer accounted for by the equity method: 0
2.Forecast for Consolidated Results for Fiscal 2003 (April 1, 2002 - March 31, 2003)
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Net income |
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* Hitachi Koki's printer business was split off and sold on October 1, 2002.
Management Policies
1. Basic
Management Policy
In line with its basic management policy, the Hitachi Koki Group is using its
world-class technologies to deliver high-quality power tools and life science
instruments to markets worldwide, thereby contributing to the global community.
As part of this effort, we are consolidating our management on a global basis
to enhance cooperation across the Group, while rapidly developing and marketing
attractive new products in advance of customer needs.
Aiming to become the number one company in the world in each of its operating
domains, the Group is redoubling efforts to improve customer satisfaction and
challenging itself to create novel products.
2. Medium-
and Long-Term Management Strategies
The Hitachi Koki Group has sharpened its focus on core business areas in an effort
to make more efficient use of its management resources. To boost its competitiveness,
on October 1, 2002, we spun off our printing division, transferring our holdings
to Hitachi, Ltd.
In the power tools business, we are bolstering our development capabilities, reducing
development lead times, and bringing attractive new products to market by furthering
such Digital Design as three-dimensional CAD. In the United States and Japan,
we are strengthening our sales capabilities by expanding home center business.
In addition, to expand our business globally, we are forming strategic alliances
with other influential companies and promoting mergers and acquisitions (M&A)
in growing areas.
Furthermore, we have shifted our focus from the scientific instrument business
with centrifuges to the growing life-science business, and we will continue to
exert further efforts in this field.
With business conditions expected to become further competitive and stringent,
we will continue to implement aggressive policies.
3. Profit
Distribution Policy
Decisions to retain earnings or distribute profits to shareholders are made only
after taking full account of future business plans, past performance, current
financial condition, and other factors. We retain earnings to facilitate efficient
investment in core products and technologies as well as the rationalization of
our facilities. After considering all relevant factors, we set the interim-term
dividend at four yen per share. In addition, we are buying back Company shares
to help return profits to shareholders and redoubling efforts aimed at boosting
capital efficiency.
4. Basic
Policy Regarding Affiliated Companies
Hitachi, Ltd. is our primary shareholder, with a stake of approximately 23%. Including
these shares, members of the Hitachi Group hold a total of 32% of Hitachi Koki’s
issued shares.
Business Performance and Financial Position
1. Business
Performance
During the interim term, the Japanese economy continued to languish, reflecting
persistent deflation, low share prices, and a further decline in capital and housing
investment. There were signs of a partial recovery overseas, but, in the United
States, a full recovery did not occur. Under these conditions, the Group worked
to strengthen its intellectual property rights, improve the efficiency of its
management, and bolster its cost-competitiveness. In addition, we accelerated
the development of new products, increased the number of orders and sales, and
implemented a global consolidated management system.
Due to these efforts during the term, the Group recorded consolidated net sales
of ¥63.3 billion, consolidated ordinary income of ¥2.2 billion, and consolidated
net income of ¥1.0 billion.
Performance
by Business Group
Power Tools Group
The Power Tools Group continued to face harsh conditions due to cutbacks in housing
investment in Japan. Overseas, sales were sluggish in Asia but steady in Europe.
In the United States, however, we recorded substantial growth in sales thanks
to good sales to home centers. As a result, sales in the Power Tools Group amounted
to ¥40.0 billion.
Printing Systems Group
In Japan, sales in the Printing Systems Group were sluggish, reflecting general
weakness in the economy and the consolidation now under way in the financial industry.
Overseas, overall sales decreased partly influenced by the slowdown in the U.S.
economy, although sales of new high-speed, continuous-form laser printers increased
significantly. Due to these factors, group sales totaled ¥21.5 billion.
Life-Science Instruments Group
Sales of Large-Scale Continuous Flow Ultracentrifuge to be used for manufacturing
vaccine showed good performance both in Japan and abroad, but sales of centrifuges
to government research institutions in Japan remained sluggish. As a result, sales
in the Life-Science Instruments Group totaled ¥1.8 billion.
Business conditions will remain difficult through the end of the fiscal year due
to sluggish investment in housing and capital and lingering concern over the health
of the U.S. economy. For the full fiscal year, we expect to record consolidated
net sales of ¥106.5 billion, consolidated ordinary income of ¥3.5 billion,
consolidated income before income taxes of ¥3.6 billion, and consolidated
net income of ¥1.5 billion.
On October 1, 2002, the Hitachi Koki Group spun off its Printing Systems Group,
transferring all of its shares to Hitachi, Ltd.
2.Financial Position
During the term, due to a decrease in receivables, net cash provided by operating
activities increased ¥4.0 billion. Net cash used in investing activities decreased
¥2.2 billion due to the purchase of fixed assets. Net cash from financing
activities decreased ¥4.7 billion due to a decrease in bank loans and the
acquisition of treasury stock. As a result, cash and cash equivalents at the end
of the term totaled ¥19.9 biliion.
Copyright © 1997-2002 Hitachi Koki Co., Ltd. All rights reserved.
