Hitachi America, Ltd.

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Hitachi America, Ltd.

founded: 1959 as hitachi new york, ltd.

Contact Information:

headquarters: 50 prospect ave.
tarrytown, ny 10591 phone: (914)332-5800 fax: (914)332-5555 url: http://www.hitachi.com

OVERVIEW

Hitachi America, Ltd. is a wholly owned subsidiary of Hitachi, Ltd., a $68.7 billion company with more than 330,000 employees worldwide. Hitachi, Ltd. is the world's largest global electronics and electrical company, manufacturing and marketing a wide range of products including computers, semiconductors, consumer products, and power and industrial equipment. Hitachi America, Ltd. manufactures and markets a broad range of electronics, computer systems and products, and semiconductors, and it provides industrial equipment and services throughout the United States. The company has employees in 7 divisions and 10 subsidiaries around the country. The company's product lines include leading-edge technology in the automotive, computer, power generation, semiconductor, office automation systems, consumer electronics, and telecommunications industries.

COMPANY FINANCES

Hitachi America's annual sales for fiscal 1997, ending March 31, were $3.3 billion, representing 29 percent of Hitachi Ltd.'s overall sales for the year. Per the annual report, Hitachi Ltd. also recorded $80.3 billion in total assets, $47.8 billion in total liabilities, gross profit of $18.3 billion, and $712 million in net income for 1997.

ANALYSTS' OPINIONS

Hitachi Ltd. is ranked by Fortune magazine as the world's largest electronics and electrical equipment company. In 1996 sales by the company's Home Electronics Division increased 20 percent, primarily due to sales of projection TVs. In 1997 Hitachi Home Electronics anticipated overall growth of 15 percent, again led by projection TVs. This anticipated growth also reflects the company's expectations for its new product offerings.

According to Victor Nowak, Executive Vice President and General Manager of Hitachi's Automotive Products Division in Detroit, Michigan, Americans benefit from Hitachi's presence in the United States. Mr. Nowak stated, referring to Hitachi's global presence, "Our combined automotive capabilities in Japan, Europe, China, and southeast Asia truly provide our customers in Detroit with the benefits of doing business with a global corporation."

Forbes magazine states that Hitachi is a viable competitor for Intel in the microprocessor market. Hitachi's chip is being installed by five of the seven handheld computer manufacturers. "Hitachi expects its microprocessors to play a leading role in portable devices," said Tsugio Makimoto, executive managing director in charge of Hitachi's semiconductor business.

HISTORY

In 1959 Hitachi, Ltd. established Hitachi New York, Ltd. in Manhattan to sell turbines and power generators. In the 1960s the product line expanded to include industrial equipment and machinery, electron tubes, telecommunications systems, and automotive parts. In 1969 Hitachi New York, Ltd. was renamed Hitachi America, Ltd. to reflect the company's national sales scope. In the 1970s computers and semiconductors became the major focus of Hitachi America's businesses. In 1975 Hitachi America established the International Procurement Group in Tarrytown to buy U.S. goods. By 1979 Hitachi America's primary purpose was marketing and servicing Hitachi, Ltd. products throughout the United States. In 1988, Hitachi America sales surpassed $1 billion.

STRATEGY

The company established the Research and Development (R&D) Division in 1989 with the primary goal of creating new technology for Hitachi's businesses in North America. The division also is linked to the global research and development efforts of Hitachi, Ltd. In another important move, Hitachi America established the Convergent Technologies Group to force its business units to work together. This organization overlays the company's independent divisions and provides a forum for components experts in semiconductors, displays storage, and CD-ROM to exchange ideas and create new products. In 1996 Hitachi America merged its computer, office automation, and field engineering divisions. The merger combined divisions with related products or services, which enabled the company to more uniformly and aggressively pursue its business goals.

FAST FACTS: About Hitachi America, Ltd.

Ownership: Hitachi America, Ltd. is a publicly owned company traded on the New York Stock Exchange.

Ticker symbol: HIT

Officers: Tomoharu Shimayama, Pres.; Philip Omsberg, Senior VP & Gen. Counsel; Katsumi Sakurai, VP, Finance; Gerald F. Corbett, Director of Corporate Communications

Employees: 6,329

Principal Subsidiary Companies: Hitachi America, Ltd. is a subsidiary of Hitachi, Ltd., which is headquartered in Tokyo, Japan. Hitachi Ltd.'s principal subsidiaries are Hitachi Automotive Products (USA), Inc.; Hitachi (Canadian), Ltd.; Hitachi Computer Products (America), Inc.; Hitachi Consumer Products de Mexico; Hitachi Electronics (America), Inc.; Hitachi Instruments, Inc.; Hitachi Micro Systems, Inc.; Hitachi PC Corporation (USA); Hitachi Semiconductor (America), Inc.; and Hitachi Telecom (USA), Inc.

Chief Competitors: As a major electronics manufacturer, Hitachi competitors include: Toshiba Corporation; Mitsubishi Electric Corporation; Hewlett-Packard; Sharp Electronics; Sony Corporation; Pioneer Electronics Corporation; Philips Electronics NV; and Matsushita Electric Industrial Co. Ltd..

Hitachi entered into numerous alliances to expand the company's market. For example, the company partnered with Hewlett-Packard to jointly develop a software product, and it partnered with Web TV Networks, Inc. to manufacture boxes. The company formed the International Business Development Group to evaluate and develop strategic alliances for Hitachi in the United States. Hitachi continued its growth in the retail channel by teaming up with Minneapolis-based Best Buy Co., Inc., a Fortune 500 company and one of the strongest merchandisers in the U.S. consumer electronics market, to distribute its Hitachi Visionbook Plus Series of notebook computers to over 280 locations nationwide. In March 1998 Hitachi, Ltd. and Sony Corporation reached a licensing agreement regarding the CPU cores of Hitachi's SuperH mircoprocessors. This move should strengthen the status of the SuperH microprocessors as an industry standard.

INFLUENCES

In 1997 Hitachi America announced the development of the world's first DVD-ROM drive for the notebook, desktop, and workstation markets. Hitachi products must maintain a competitive advantage within the market. Accordingly, the company requires that the parts and materials it purchases come at the most competitive prices. Hitachi is one of the few companies in the world that can develop, manufacture, and market all the essential components of its products.

In the late 1990s Hitachi America debuted a new Hitachi corporate advertising campaign in the United States. This multi-million dollar campaign, sponsored by Hitachi, Ltd., will focus on attracting new consumers through brand recognition, specifically regarding the Ultravision Projection TVs. The television programs selected for the campaign include the "Wonderful World of Disney," "Monday Night Football," and "Home Improvement." The print ads will appear in Entertainment Weekly, Sports Illustrated, Fortune, and Forbes magazines.

CURRENT TRENDS

In 1996 the R&D Division established the Information Technology Group (ITG) at the San Jose Semiconductor Research Lab to focus on leading-edge information technologies for the commercial application of Hitachi's computer products. ITG's first project was to develop data warehouse and data mining application software to operate on commercial parallel computers and servers. The Automotive Products Research Laboratory in Farmington Hills, Michigan, has been experimenting with cleaner burning engines. Its goal is to design a nonpolluting car for the future. The Semiconductor Research Laboratory in Brisbane, California, is creating new technologies in high-speed Digital Signal Processing (DSP). The Digital Media Systems Laboratory in Princeton, New Jersey, is working on the development of digital communications technologies and products. The Information Technology Group in Santa Clara, California, is expanding its activities in the global information infrastructure arena to create a new information system concept. In addition, Hitachi, Ltd. is working to develop high-quality diagnostic instruments for the health care industry. Hitachi America, Ltd. operates three laboratories as well as planning and administration divisions on both coasts. It sponsors research seminars and programs with America's top universities and participates in several residential research programs with U.S. corporations.

CHRONOLOGY: Key Dates for Hitachi America, Ltd.

1959:: Hitachi, Ltd. Establishes Hitachi New York, Ltd.
1969:: Hitachi New York is renamed Hitachi America, Ltd.
1975:: Hitachi America establishes the International Procurement Group
1988:: The company's American sales surpass $1 billion
1989:: The company establishes the Research and Development (R&D) division
1997:: The company announces the development of the world's first DVD-ROM drive
1997:: Hitachi America introduces the MP-EGI digital camera

PRODUCTS

In response to the advent of the digital era, in July 1997 Hitachi Home Electronics (America) Inc. (HHEA) introduced the MP-EGI digital camera. This camera, the first all-digital device on the market, can capture up to 20 minutes of full-motion video, 3,000 still images, or 4 hours of audio. HHEA also introduced the UltraVision MMV, a multimedia vision 27-inch TV with VGA input—the perfect TV/Monitor for PC gaming and Internet browsing. Additional new products include the HDS-1110S Digital Satellite System, the DVHS Digital VCR, and the GD-2000 double-speed DVD-ROM drive. HHEA has also introduced a new line of fully automatic camcorders, including several 8mm units with a 3-inch LCD display that allows for instant review of videos. Hitachi also plans to introduce a new projection TV line, the FX Series. All in all, the company planned to introduce 45 new products for fiscal year 1997. In the first month of fiscal year 1998, Hitachi, Ltd. released a new PCMCIA I/F card emulator for its most powerful microprocessors, two new models in its series of standard logic integrated circuits (ICs), and a new series of cell-based ICs.

CORPORATE CITIZENSHIP

Hitachi, Ltd. was one of the first Japanese companies to get involved with large-scale philanthropic endeavors and is committed to its responsibility to the community. Since 1976, Hitachi America, Ltd. has created a sophisticated giving program that combines employee volunteerism and direct funding. Hitachi is involved in innovative programs aimed at improving the quality of life in the communities where its employees live and work. The company also invests a portion of its pre-tax profits in charitable and cultural activities. Since 1985, Hitachi's Foundation has made more than 500 grants in American communities.

Hitachi Automotive Products, Inc. operates a Technical Center that provides engineering, design, and development support. To date, it has developed high-quality sensors and control units that are used to reduce car emissions and increase fuel economy while also meeting government diagnostic regulations.

GLOBAL PRESENCE

Hitachi America operates eight manufacturing facilities in the United States and Mexico. The company is organized for the primary purpose of marketing and servicing all Hitachi, Ltd. products, other than consumer goods, throughout the United States. Hitachi products are sold by eight Hitachi America divisions, each serving a specific product line. Principal division offices are located in New York, Atlanta, Houston, Los Angeles, San Francisco, and Chicago. Hitachi's Information Technology Group is expanding its activities in the global information infrastructure arena to create a new information system concept. In 1998 there were 75 Hitachi companies in North America.

Hitachi also reaches more than 200 public broadcasting stations nationwide through its sponsorship of "Real Science!," an educational program aimed at 12 to 16-year olds. The award-winning program is designed to inspire youths to take up careers in science.

EMPLOYMENT

Hitachi America actively seeks individuals in the areas of administration, engineering, sales, finance and accounting, service and support, research and development, and marketing. The company offers its employees pension plans and severance benefits. It is an equal opportunity employer that exhibits no discrimination.

SOURCES OF INFORMATION

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