Hitachi Cable News vol.373
73rd cumulative second quarter business report
From April 1 to September 30, 2009

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Message from the President

Due to the various economic and financial measures enacted in each nation, the world economy showed signs of recovery during the cumulative second quarter of this consolidated fiscal year (April 1 – September 30, 2009). Nevertheless, generally speaking, severe conditions persist. Due to the impact of these continuing harsh economic conditions, the business performance for the Hitachi Cable Group during the cumulative second quarter of this consolidated fiscal year showed sales of 170,284 million yen, operating losses of 5,321 million yen, ordinary losses of 3,784 million yen, and net losses of 4,850 million yen.

In response to rapid changes in the business environment since fall 2008 the Hitachi Cable Group is currently moving ahead with aggressive business-restructuring efforts, including efforts to reorganize and consolidate its production bases, particularly in businesses experiencing declining profitability, alongside comprehensive cost reductions targeting fixed costs. The Group is also energetically striving to improve business performance through steady efforts to capture the recovering demand emerging since spring in various markets, including the semiconductor and automotive markets.

Due to these efforts, in terms of ordinary losses by quarter, Group business performance since the final stage of the previous fiscal year has steadily recovered, with ordinary-loss figures falling from approximately 11 billion yen in the fourth quarter of the previous consolidated fiscal year (January 1 – March 31, 2009) to approximately 2.6 billion yen in the first quarter of this consolidated fiscal year (April 1 – June 30, 2009) and to approximately 1.2 billion yen in the second quarter of this consolidated fiscal year (July 1 – September 30, 2009).

In the second half of this consolidated fiscal year, in addition to sustaining various urgent measures, including cost reductions, to improve business performance, we will energetically strive to establish foundations for sustained recovery in business performance and for future growth, including efforts to promote structural reforms in unprofitable business areas and to enhance businesses in fields that promise future growth, such as the environment and infrastructures.

The interim dividend for this consolidated fiscal year is 2.50 yen per share.

The Hitachi Cable Group is grateful for the continuing support of its shareholders.

December 2009

President and Chief Executive Officer
Mitsuo Imai