Sumitomo Electric Targets 25% Higher Sales in F2012

Sumitomo Electric Industries announced on Thursday the firm targets 3 trillion yen of consolidated sales and 7% of operating profit on sales in fiscal 2012 ending March 2013 under the new 5-year plan, 2012 Vision. The target is 25% higher for sales and 1.8% higher for profit rate than fiscal 2007. The firm tries to clear the mid-term target of 2.52 trillion yen of sales and 6% of profit rate for fiscal 2009. The firm is finishing the first 5-year plan, 2007 Vision. The firm already cleared the target of 2 trillion yen of consolidated sales, 120 billion yen of operating profit and 8% of return on assets one year ahead of the schedule. The new plan is to focus on better balance of business portfolio for new growth. The firm tries to expand other business than automobile wiring harness and reduce the weight of wiring harness to around 30% of total sales in fiscal 2012 from 50% in fiscal 2007. The firm increases the telecommunication business from 10% to 20% and increases the electronics business from 14% to 20% of total sales from fiscal 2007 to fiscal 2012. The firm targets 67 billion yen of operating profit with 1.14 trillion yen of sales for automotives business for fiscal 2009. The growth rate is 1.8% for sales and 8.1% for operating profit from fiscal 2007 to fiscal 2007, which is lower than previous plan. The wiring harness share up also slows down when the firm is finishing the share growth and the firm tries to focuses on better value. The firm tries to expand the world share for major item of automobile wiring harness from just more than 20% now to 25% in fiscal 2012. The firm expands the share for European and US carmakers from less than 10% to 15%. The firm plans 18 billion yen of operating profit with 348 billion yen of sales for telecommunication business and 24 billion yen of operating profit with 325 billion yen of sales for electronics business for fiscal 2009.