Tatsuta Electric Wire & Cable Targets Record Profit in F2014

Tatsuta Electric Wire & Cable targets record 4.8 billion yen of consolidated operating profit for fiscal 2014 ending March 2015, which is 43.5% higher than fiscal 2011 level, briefed at presentation on Friday. The firm targets 50 billion yen of sales in fiscal 2014, which is 9.1% higher than fiscal 2011 level. The firm plans 4.15 billion yen of operating profit for electronic materials and 600 million yen of operating profit for electric wire and cable while the electric and wire business posted loss in fiscal 2011.

The firm targets 18 billion yen of sales for the electronic materials in fiscal 2014, which is 28.7% higher than fiscal 2011 level. The targeted operating profit is lower than 4.564 million yen in fiscal 2011 due to lower price and higher depreciation. The unit plans 6 billion yen of capital expenditure in fiscal 2012 and 700 million yen in fiscal 2013 and 2014.

The firm plans to streamline electric wire and cable business. The firm withdrew from metal communication cable at Kyoto plant by March 2012. The firm expends 1-2 billion yen at Osaka plant, which supplies power cable for power companies and construction industry, to improve the productivity.

The firm launched the subsidiary in Suzhou started industrial cable to local transplants of Japanese manufacturers in April. The firm also started consignment processing of cable for robot in Southern China in February. The firm plans 5 billion yen of sales for industrial cable including around 800 million yen for offshore sales.

The firm plans the electric wire and cable unit reduces the operating loss to 480 million yen in fiscal 2012 from 966 million yen of loss in fiscal 2011. The firm targets 29.3 billion yen of the unit’s sales in fiscal 2014, which his 2.1% lower than fiscal 2011 level. The unit’s capital expenditure is 900 million yen in fiscal 2012 and 800 million yen in fiscal 2013 and 2014.