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Hitachi to spin off units amid reshuffle


The changes reflect concern within Hitachi about the scale of this year’s expected losses – equivalent to almost a third of shareholders’ equity as of March 2008 – but analysts were sceptical that the move would lead to radical change at the sprawling group.

In response, Hitachi promised on Monday to cut costs by Y500bn, equivalent to 4.6 per cent of last year’s operating expenses. Of that, Y200bn will be cuts to fixed costs and Y300bn will come from a lower procurement bill, which is falling anyway because of raw material price declines.

Etsuhiko Shoyama, outgoing chairman and former president, will remain on the board and is likely to wield influence, as will outgoing president Kazuo Furukawa, who will also stay on the board as deputy chairman.

sprawling 不規則に広がる[伸びる],手足をぶざまに伸ばした.

procurement 調達,買い上げ

wield 〈権力・武力などを〉ふるう,掌握する

deputy 代理(人)

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