Hitachi Cable Targets 6% Operating Profit Rate in F2015

Hitachi Cable announced the firm targets 6% of operating profit on consolidated sales for fiscal 2015 ending March 2016. The firm finished annualized 13 billion yen of cost reduction by end of fiscal 2012 compared with fiscal 2011 to realize in fiscal 2012. The firm tries to post net profit in fiscal 2012 for the first time in 5 years.

The firm targets 12 billion yen of operating and recurring profit and 6 billion yen of net profit with 380 billion yen of sales in fiscal 2012. The firm posted 22.8 billion yen of net loss in fiscal 2011 due to 22.1 billion yen of onetime loss for restructuring.

The firm tries to improve the business structure in fiscal 2012. The firm expands offshore business for industry, power and communication infrastructure while the firm streamlines electronics business. The firm studies expansion of industrial electric wire output in Suzhou, China and electronic device electric wire output in Vietnam and new production of electric wire for power and industry in Vietnam. The firm consolidates 8 lead frame and other companies into 4 companies in Southeast Asia.

The firm tries to develop offshore market for high voltage power transmission cable mainly in China, India and Europe. The firm also increases the sales of automotive parts for automakers of Europe and USA. The firm develops communication infrastructure market to provide network devices and cell phone antenna.