Hitachi Planning IPO for Its Storage Division

By Chris Preimesberger  |  Posted 2010-11-05 Print this article Print

Hitachi said that it is preparing to list the shares of its U.S.-based hard disk-drive unit, Hitachi Global Storage Technologies, on either the NYSE or the Nasdaq. No date yet.

Hitachi, the vast Japanese conglomerate buoyed by an improved fiscal Q2 2010 report after several quarters of massive losses, said this week that it wants to break out its storage division into its own entity and set up an initial public offering.

The Japan-based multinational, ranked in the world's top 10 IT companies by revenue in 2009, on Nov. 4 reported a group profit of 71.99 billion yen ($893 million) in the period, its fiscal second quarter.

That compared with a net loss of 50.56 billion yen in the year earlier quarter. Operating profit rose more than fivefold to 129.57 billion yen from 25.84 billion yen, while revenue rose 5 percent to 2.35 trillion yen from 2.232 trillion yen.

A main part of the resurgence of the company is due to its IT division, which makes servers, storage arrays, electronics components, automotive systems and chip-making equipment. Its storage group was among the most profitable.

In a separate announcement, Hitachi said that it is now preparing to list the shares of its U.S.-based hard disk-drive unit, Hitachi Global Storage Technologies, on either the New York Stock Exchange or the Nasdaq Stock Market.

However, the company has yet to decide when it will stage the initial public offering. 

Hitachi said it would use the funds acquired through the IPO for research and development and other strategic investments.

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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