Hitachi Metals Targets 50% Offshore Sales in 3-Year Plan

Hitachi Metals announced on Tuesday the firm increases the offshore sales rate to 50% in fiscal 2012 from 39% in fiscal 2009 under the new 3-year plan through fiscal 2012. The firm develops offshore market especially for Asia by the across the board efforts including wider offshore sales bases, new alliances with local partners and development of new environmental friendly products. The firm tries to change itself into growing global company under longer 2015 vision.

The firm targets 60 billion yen of consolidate recurring profit with 600 billion yen of sales in fiscal 2012 compared with estimated 28 billion yen of profit with 500 billion yen of sales in fiscal 2010. The president Hiroyuki Fujii said the firm tries to meet customers’ needs by improving the manufacturing ability including shorter lead time. The firm improves the cost competitiveness by improving the production process and inventory control. The firm expands the processing bases in China, Southeast Asia and other Asian countries.

The firm focuses the resources into environmental friendly products to increase the new products sales rate to 30% in fiscal 2012 from current 20%. The firm improves the products grade for amorphous for energy industry, high performance magnet for automotive motor and heat resistance casting automotive parts. The firm invests 84 billion yen for wider offshore bases and products development in 3 years.

The firm expands the sales for each unit. The high-grade metal products and materials unit increases the sales by 17% to 260 billion yen in fiscal 2012 from estimated level in fiscal 2010. The firm expects the sales increases by 34% to 174 billion yen for the electronics and IT devices unit and by 15% to 170 billion yen for high-grade functional components and equipment unit.

The firm posted on Tuesday the consolidated recurring profit decreased by 2.0% to 10.033 billion yen with 26.9% lower sales at 431.683 billion yen in fiscal 2009 from fiscal 2008. The operating profit decreased by 11.3% to 13.349 billion yen.