Viscas Targets 20% Y/Y Higher Sales and Profits in F2011

Viscas Corporation, Japanese HV and UHV power cable maker fifty-fifty controlled by Furukawa Electric and Fujikura, projects more than 20% year-on-year higher sales and profits in fiscal 2011 starting in April. Full-year revenue for fiscal 2010 is estimated at around 61 billion yen with net profit at around 1 billion yen.

The main plant in Ichihara City, Chiba, Japan entered full production in January. Viscas successfully contracted several large-scale orders for HV and UHV power transmission cables mainly in Middle East countries in 2010. Ichihara plant is expected to keep full operation by September-October 2011 with current order backlogs.

In recent 2 years, price competitions became much severer with major electric cable makers in Europe and South Korea due to yen appreciation against other currencies. Profitability of exporting power cable business has totally downed.

Viscas posted annual net sales of 81 billion yen with record net profit of 3.6 billion yen. Wide-range sales and profit downturn was preliminarily forecasted for fiscal 2010, estimated from order backlog volume and price. Viscas has tried hard to reduce productive cost in order to maintain annual profitability.