Hitachi 2009 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2009 Hitachi annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

The world economy faced unprecedented difficulties
in the past fiscal year as the financial crisis triggered
by the U.S. subprime loan problem threw the econ-
omy into disarray in the latter part of 2008.
The market shockwaves spread to the Hitachi
Group’s businesses, causing a large drop in demand
in auto-related and other businesses that were viewed
as growth fields. The impacts were particularly acute
during the second half of the fiscal year. Even now as I
write this letter, the outlook is unclear, with concerns
about further restrictions on lending, the risk of shrink-
ing IT investment and persistent sluggishness in con-
sumer spending. The picture for the economic
environment is far from rosy as things stand today.
Under these bleak conditions, Hitachi saw consoli-
dated revenues fall 11% from the previous fiscal year,
to ¥10,000.3 billion, and operating income fell 63%,
to ¥127.1 billion. Furthermore, we posted a net loss of
¥787.3 billion, ¥729.2 billion worse than our fiscal
2007 result. One of the main reasons for this wider
loss was business structure reform expenses in flat-
panel TV, automotive systems and certain other busi-
nesses, including impairment losses relating to fixed
assets. Higher net equity in losses of the affiliated
semiconductor company and the write-off of deferred
tax assets were among other factors that also brought
about this bottom-line result.
TO OUR SHAREHOLDERS
2Hitachi, Ltd.
Annual Report 2009