Fujikura Lowers Sale and Profit Targets for F2010

Fujikura announced downward revision of the mid-term sale and profit targets by fiscal 2010 ending March 2011 on Tuesday. The firm lowered the consolidated operating profit estimation for F2010 to 59 billion yen from previous 68 billion yen, while the consolidated net sales estimation to 840 billion yen from previous 850 billion yen. The revaluation weaved higher material costs, stronger exchange of Japanese yen and Thai baht, and the market decline of electronic materials.Kazuhiko Ohashi, Fujikura’s president, said at a press conference on Tuesday the firm aims the sharp rebound of the consolidated operating profit to the sales from the bottom at 3.1% in F2007 and F2008 to 5.1% in F2009 and 7% in F2010.The downward revision was mainly in the Electronics & Auto division. The sales target of the division for F2010 was lowered to 350B yen from previous 400B yen while the operating profit target was cut to 24.5B yen from previous 35B yen. The sales of the division include flexible printed circuits (FPCs) at 125B yen (lowered by 25B yen), connectors at 45B yen (lowered by 15B yen), automotive parts at 90B yen (upped by 10B yen) and other electronic products at 90B yen (lowered by 20B yen).The Electronics & Auto division posted operating loss in F2007. Fujikura aims the V-shaped recovery for the division toward F2010. For the FPC business, the firm tries to reorganize the productive systems mainly in Thailand and to expand output capacity of high-value-added products. As to the automotive business, Fujikura will make ACE of Spain, acquired by Fujikura in 2006, into the wholly owned subsidiary within this month and hastens the profit recovery.