Of the four Japanese electronics giants just reporting financial results for the year to March 31, Mitsubishi Electric Corp was the only company to turn in net profits that were below analysts’ expectations, whilst the figures of Hitachi Ltd, Toshiba Corp and Fujitsu Ltd held few surprises. Mitsubishi blamed price competition and rising labour costs for its disappointing 1.3% rise in consolidated pre-tax profits to the equivalent of $1,331m, on sales that were up 11% at $24,125m, bumped up by robust capital spending by domestic companies. The company’s regular dividend remained static at $0.07 per share, though a special dividend of $0.007 per share was added for the year. Mitsubishi is already predicting an 8% decline in pre-tax profits to $1,222m for the current year. Hitachi, on the other hand, is forecasting pre-tax profits for 1992 relatively flat at $4,074m, having reported 1990 pre-tax figures up 6% at $4,080m on sales that rose 9% to $56,311m. Hitachi’s dividend for the year was unchanged at $0.08 per share. Toshiba and Fujitsu are the most confident for the present financial year, both daring to forecast an increase in pre-tax profits – Toshiba tentatively predicts a 0.4% rise to $1,892m, whilst Fujitsu is banking on a relatively large leap of 21% to $1,310m on turnover expected to increase by 23%. Toshiba’s conservative optimism follows a 4% drop in 1991 pre-tax profits to $1,883m on sales that rose 10% to $34,158m. The company’s cautious confidence also permitted a marginal dividend increase to $0.07. Fujitsu put its 1% fall in pre-tax profits to $1,082m down to high interest rates and declining revenues from stock and land holdings – a sales growth of 17% to $21,615m, meanwhile, inspired a full-year dividend increase to $0.07 per share. Domestic computer sales were up, said the parent company, but sales of electronic devices were down 8% – due to a fall in demand for memory devices – and Fujitsu’ debt servicing load increased. Sales of communication equipment were up by 15%, courtesy of strong demand from Nippon Telegraph & Telephone, and information processing system sales climbed 12%. The company is currently expanding its semiconductor production capacity, hoping for stronger demand for its newer chips this year. The forecast 23% increase in Fujitsu’s sales in 1992 take into account the contribution from 80%-owned ICL Plc.
