Furukawa Targets 5% Higher Profit for F2010

Furukawa announced on Friday the firm targets 15 billion yen of consolidated operating profit for fiscal 2010 ending March 2011 under new 3-year business plan through fiscal 2010, which is around 5% higher than estimated profit for fiscal 2007. The firm tries to clear the target by expanding new products development and offshore business while the firm expands the capital expenditure by 50% to 18 billion yen for the 3 years compared with 3 years through fiscal 2007. The firm expects the operating profit increases by 3.5 billion yen for machinery unit and by 600 million yen for electronic materials unit for fiscal 2010 compared with estimated profit for fiscal 2007 while the metal business reduces the profit by 4.1 billion yen due to lower processing charge for smelting. The firm tries to expand the operating profit to more than 10 billion yen for the machinery unit by improving the productivity and cost control along with the better quality under the 3-year plan. The firm also optimizes the production network including offshore subsidiary for better cost structure. The firm launches high valued products including energy saving and lower noise crane, lower noise breaker and other environmental and high functional items. The firm improves the offshore sales network for machinery by launching rock drill sales area managing companies in North America, Asia and Europe. The firm tries to develop newly developing countries including India and Russia while the firm expands the sales in Middle East and China. The firm targets 40% world market share of breaker and crawler drill in fiscal 2012 compared with current 30%. The firm increases the UNIC crane offshore sales to 40% in fiscal 2010 from current 20% by expanding the sales network in North America, Europe, Russia and former USSR, Asia, Oceania and Middle East.