| | HITACHI HOME | UP | SEARCH | |  |
| | HITACHI HOME | UP | SEARCH | | |
25 April 1996
At a meeting of the Board of Directors of Hitachi, Ltd. convened on April 25 1996, it was decided to include extraordinary losses (unconsolidated basis) in the accounting period ended March 1996 (the period from April 1 1995 to March 31 1996). The extraordinary losses comprise a contribution of approximately 29 billion yen to cover a pension account deficit and outlays of approximately 21.9 billion yen related to the restructuring of consumer product operations.Since an extraordinary gain of approximately 29.2 billion yen was realized from the sale of marketable securities, net of these extra items affects adversely pre-tax income by approximately 21.7 billion yen.
Details of loss items1. Contribution to pension account (approximately 29 billion yen)
- In accordance with the Ministry of Health and Welfare, Pension Bureau's notice on the "Handling of Additional Contribution with Regard to Employee Pension Funds" given as November 27, 1995, to stabilize fund finances, over the period from April 1996 to April 1997 the company will contribute the premium of approximately 29 billion yen.
- The contribution will be included as an extraordinary loss in the accounting period ended March 1996.
2. Cost of restructuring consumer product operations
(approximately 21.9 billion yen)- Losses of approximately 21.9 billion yen in provision for losses arising from overseas investment, devaluation in stock and investment in subsidiaries arising in the course of restructuring of consumer products operations in Europe and streamlining of subsidiaries in Japan will be included as an extraordinary loss in the accounting period ended March 1996.
Details of restructuring of consumer products operations in Europe
- On the manufacturing side, in response to shifts in product structures, at the company's U.K. production base VCR production was terminated to move to production of PC monitors, CD-ROM drives and other such items.
- On the sales side, to achieve a unified management approach throughout Europe, consumer products sales companies were consolidated and streamlined and will be controlled by a unified consumer products company coming under the umbrella of Hitachi Europe, Ltd. The sales companies will also utilize Hitachi Europe's sales network to market displays and other PC products.