Japan's Top Chip Makers Foresee Improved Earnings
Thursday, January 7, 1999
TOKYO (Nikkei)--Amid signs that the semiconductor market is bottoming out, Japan's top five chip makers expect their earnings to improve in the six months through March 1999.
"Panic could set in this spring once the DRAM supply gets low," says one Hitachi Ltd. (6501) executive, who adds that the prospect of such a shortage raises hopes for "a substantial earnings improvement."
Hitachi's semiconductor business is expected to incur a consolidated operating loss of 120 billion yen in the fiscal year through March 31. But company sources say the loss will likely shrink by 10 billion yen during the second half.
Hitachi and the nation's four other leading chip makers -- NEC Corp. (6701), Toshiba Corp. (6502), Fujitsu Ltd. (6702) and Mitsubishi Electric Corp. (6503) -- all sustained consolidated operating losses in their semiconductor businesses in the fiscal half ended Sept. 30, 1998.
NEC, however, now projects an operating profit for the second half, and the other four firms expect their figures to improve by roughly 10-20 billion yen from the first half during the period.
"The five leading chip makers can expect their earnings to grow by 65-110 billion yen from a year earlier in fiscal 1999," says Hideki Wakabayashi, a senior analyst at Dresdner Kleinwort Benson (Asia) Ltd. |
