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To: Proud_Infidel who wrote (37255)	9/13/2000 10:14:16 AM
From: Proud_Infidel	Read Replies (1) \| Respond to of 70976

Hitachi forecast soars Electronics maker nearly doubles estimate of first-half net profit September 13, 2000: 8:16 a.m. ET TOKYO (Reuters) - Japanese electronics maker Hitachi Ltd. raised its first-half net profit forecast Wednesday, saying it now predicts more than an 11-fold increase due to demand for semiconductor chips used in electronic games, digital cameras and mobile phones. Hitachi raised its consolidated net profit estimate for the six-months ending Sept. 30 to 55 billion yen ($514.6 million) from its earlier estimate of 30 billion yen. That would be an 11.7-fold jump from the 4.7 billion yen earned in last year's first half. The outlook for fiscal year ending March 31 also is brighter, the company said. "The feeling so far is that we'll see an upward revision (for the full year) like we did for the first half, although the rise may not be of the same scale," a company spokesman said. Hitachi, an integrated electronics company that makes a variety of products including washing machines and nuclear reactors, also said it expects to pay an interim dividend of 5.5 yen per share, up from 3 yen a year ago. Yoshiharu Izumi, an analyst at UBS Warburg, said the revised forecasts were higher than he had expected. "The contribution from materials was large, as well as for LCDs (liquid crystal displays). But basically it is demand for semiconductors, and prices were stable," Izumi said. Prior to the announcement, Hitachi's shares closed up 4.74 percent at 1,259 yen. Hitachi is the latest Japanese electronics maker to revise upward its earnings projections due to surging demand for chips and other devices used for personal computers and mobile phones. Others include NEC Corp., Toshiba Corp., Kyocera Corp., the world's biggest maker of ceramic packages for integrated circuits, and Nikon Corp, which makes cameras and chip-making equipment. Tuesday, Japan's Sharp Corp. predicted its group operating profit would hit a record high this business year, helped by robust sales of liquid crystal displays (LCDs) for computers as well as other components. Upbeat performances in the electronics and precision instruments sectors have prompted analysts to upgrade their estimates for Japanese companies' profit growth for this business year. Japan's biggest brokerage house, Nomura Securities, said Tuesday it now expects net profits at major Japanese non-financial firms on a consolidated basis to rise 27.6 percent this business year, against its June estimate of 23.2 percent. Copyright 2000 Reuters All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.