Japan Major 5 Electric Wire Makers Post Better Results in F2009

Japanese major 5 electric wire makers posted better consolidate results due to better demand and cost cutting effort for fiscal 2009 ended March 2010 while 2 makers posted recurring loss. Fujikura kept the profitability both in the first half and second half while Sumitomo Electric Industries and Furukawa Electric regained the profitability in the second half from loss in the first half. The all 5 makers expect the recurring profit for fiscal 2010.

Their sales volume reached 70-80% of the peak for automotive and electronics products and more than 90% of the peak for hard disc related products after the demand trend recovered since July-September. The demand was firm for optical products mainly for export, especially for China while the domestic demand was slow for construction.

The lower sales volume reduced the operating profit by 15.2 billion yen for Furukawa Electric, 9.8 billion yen for Fujikura and 19.6 billion yen for Hitachi Cable in fiscal 2009 from fiscal 2008. They covered the negative factor by reducing cost to secure the profitability.

They expect the sales volume for automotive and electronics products in fiscal 2010 is same level or slightly higher than the level in second half of fiscal 2009. They expect infrastructure investment lifts the demand for optical products and electric wire in China and emerging countries. Fujikura expects same level of recurring profit as fiscal 2009 while other 4 makers expect better results.