SEI Eyes Leverage for Achievement of 5-Year Management Plan

Mr. Masayoshi Matsumoto, president of Sumitomo Electric Industries (SEI), said at an interview with Japan Metal Bulletin that the firm eyes leverage measures to achieve its 5-year management plan ending in March 2013 “12Vision.” The management plan targets 3 trillion yen of consolidated net sales with 210 billion yen of consolidated operating profit for fiscal 2012 ending in March 2013, the final year of “12Vision.” Mr. Matsumoto referred to possibility that these financial targets may not be achieved only by organic growth. He indicated the business leverage in electric power and energy fields.

SEI’s consolidated net sales were 1.84 trillion yen with operating profit at 51.7 billion yen in fiscal 2009 ended in March 2010. Mr. Matsumoto said the latest financial estimation is approaching to the final-year targets of “12Vision” by business expansion in emerging countries and new business cultivation. Some leverage is required for the concrete achievement while, Mr. Matsumoto said, the achievement should basically rely on sum up of sales and profits increase in conventional businesses.