Yazaki Corp Posts First Profit Growth since F2004, Lower Overseas Sales

Yazaki Corporation, the world top supplier of automotive wiring harness and one of Japanese major electric cable makers, posted the first year-on-year improvement of non-consolidated recurring profit for fiscal 2007 (Jul07-Jun08) since fiscal 2004. The non-consolidated recurring profit increased by 4.4% to 21.4 billion yen for F2007 from F2006 thanks to successful price hike and cost cut effort despite of productive cost expansion and severe price competition. The non-consolidated revenue increased by 7.4% to 853.6 billion yen for F2007 from F2006. On the other hand, the revenue at overseas subsidiaries decreased by 2.1% to 639.4 billion yen.

The non-consolidated sales for automotive parts business unit increased by 8.1% to 722.6 billion yen for F2007 from F2006, inside of which the revenue for automotive wiring harness increased by 8.7% to 402.1 billion yen thanks to automobile production growth in Japan during the period. On the other hand, overseas subsidiaries’ sales decreased for F2007 where automotive wiring harness is mainly produced. Yazaki Corp holds more than 30% shares in global automotive wiring harness market. The firm seemed to be impacted by automakers’ output reductions worldwide, mainly in North America.

The non-consolidated sales for the building and power distribution cable unit increased by 3.7% to 92.5 billion yen for F2007 from F2006. Yazaki Corp consumed total 102,127 tonnes of copper through F2007, increasing by 4% year-on-year. For the building and power distribution cable unit, about 65,000 tonnes of copper was used, increasing by 0.5% from a year earlier.