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SCMP Reporter

ELECTRONICS giant Hitachi's plan to explore the China market this year is part of its attempts to reduce the effects of the high yen.

  The Japanese firm recorded 75 per cent growth in profit last year, but general manager Kiyoshi Yoshida has predicted less promising results for 1995.

  Total turnover for the year to March, rose three per cent from 7.4 trillion yen (about HK$673 billion) to 7.59 trillion yen.

  Profits jumped significantly from 65.72 billion yen to 113.91 billion yen.

  Earnings per share shot up from 19.27 yen to 33.02, or 71 per cent.

  Mr Yoshida attributed the success mainly to a rise in overseas demand for semiconductor memories in information equipment.

  Sales increased 21 per cent over the previous year.

  A decline in the operating loss of the consumer products sector helped to achieve a rise in profits.

  Part of the loss was saved by moving a colour TV factory from Canada to Mexico.

  Last year this sector suffered a loss of 30 billion yen, down from 43.73 billion.

  This year prospects were bleak, with turnover worth 7.6 trillion yen, which would mean a zero gain. Growth in profit would drop to a mere five per cent, Mr Yoshida said.

  'The semiconductor market has almost reached its peak at the moment and that's why we are making a quite conservative forecast,' he said.

  The appreciation of yen against major currencies and the slow recovery of private sector investment has dealt a blow to the company's future performance.

  New plants in China, Indonesia and the Philippines, are deemed to be the major international procurement base where demand for Hitachi products is on the increase.

  Mr Yoshida said contracts had already been secured in China to produce automatic teller machines and computer workstations, starting in October.

  The corporation had its eye on a large-scale project which would allow banks on the mainland to use a unified on-line system.



Hitachi focus on mainland