Yazaki Posts 7% Lower Annual Profit

Japanese major electric wire maker, Yazaki Corporation reported the consolidated recurring profit decreased by 7.1% to 21.411 billion yen with 13.7% higher sales at 680.668 billion yen for the year ending June 2006 from previous year. The firm was suffered from higher cost of raw materials and price competition. The firm increased the copper consumption by 2.1% to 98,992 tonnes for the year. The automotive parts unit increased the sales by 12.7% to 584.7 billion yen, in which the automotive wiring harness’ sales increased by 9% to 321.5 billion yen.The main unit of automotive parts tried to expand the order receipt when automakers launched new models at home and abroad though the users sought wide cost cutting and shorter lead time for development and raw materials cost surged. The unit increased the sales of auto parts and meters other than wiring harness by 17.5% in the year from previous year. The electric wire unit’s sales increased by 29.2% to 64.5 billion yen in the year from previous year. The shipment increased by 5.2% to 65,000 tonnes. However, the firm failed to pass all of higher cost price for copper and lining materials on the selling price resulting lower profit.