News Releases


Hitachi to Pursue Further Structural Reforms

Tokyo, October 31, 2002 --- Hitachi, Ltd. (TSE:6501 / NYSE:HIT) today announced that it intends to pursue further structural reforms to increase competitiveness through highly efficient management.

Moving forward, Hitachi will allocate more resources to “i.e. Social Systems*,” which wed information system services and social infrastructure systems, in a bid to create new businesses that stimulate new demand.

Concurrently, Hitachi is to reexamine and reshape its business portfolio using its proprietary value-added evaluation index, FIV** (Future Inspiration Value), as well as advance a new Group management drive to raise efficiency and accelerate its transformation into a highly profitable company.

* The “i.e.” stands for information electronics.

**FIV is a proprietary value-added evaluation index based on economic value added in which the cost of capital is deducted from after-tax operating profit.