Hitachi Cable Improves Profitability

Hitachi Cable said at press conference for first half year results on Tuesday the Future Inspiration Value, which is the original indicator of Hitachi group and figure after the cost of capital is deducted from after-tax operating profit, will be positive for fiscal 2006 ending March 2007. The firm expects the consolidated recurring profit will be 17.5 billion yen for the full year compared with original outlook of 14 billion yen. The firm will clear the target a year ahead though the firm tries to post positive FIV in fiscal 2007 under the 3-year plan ending fiscal 2008. The firm targets 14 billion yen of consolidated recurring profit for fiscal 2006, 17 billion yen for fiscal 2007 and 20 billion yen for fiscal 2008 under the 3-year plan, BEGIN. The firm now expects the firm can clear the profit target and clear the FIV target a year ahead. The firm increased the profit the firm demand for electric cable and high performance materials and higher selling price of electric wire. The consolidated operating profit increased to 3.5 times at 9.9 billion yen with 31.8% higher sales at 251.8 billion yen for the first half from same period of 2005. The firm increased the operating profit by 7.1 billion yen including 2.1 billion yen from higher sales volume of electric wire and cable, 1.2 billion yen from tape automated bonding unit and 400 million yen from compound semiconductor. The firm expects 18 billion yen of consolidated operating profit, 17.5 billion yen of recurring profit and 8.7 billion yen of net profit with 510 billion yen of sales for fiscal 2006. The electric wire and cable unit plans to post 9.3 billion yen of operating profit with 253 billion yen of sales and the high performance materials unit will post 6.5 billion yen of operating profit with 188 billion yen of sales.