SWCC Showa to Generate 4.1B Yen Recurring Profit in F2012

SWCC Showa Holdings announced on Monday its new 3-year management plan “GLOBAL SWCC 2012” to target the consolidated annual recurring profit at 4.1 billion yen with the consolidated net sales at 165 billion yen in fiscal 2012 ending in March 2013. The firm aims to recover the consolidated recurring profit in fiscal 2010 and expand the profit toward fiscal 2012 mainly eyeing infrastructure related markets. The capital expenditure is planned at total 13 billion yen for fiscal 2010-2012.

SWCC Showa Holdings estimates its consolidated annual net sales at 138 billion yen with the recurring loss at 1.6 billion yen in fiscal 2009 ending in March 2010. The firm aims to gain 1 billion yen recurring profit in fiscal 2010, then 2.6 billion yen in fiscal 2011 and 4.1 billion yen in fiscal 2012.

The firm tries to expand the sales of the products related to electric power and telecommunication infrastructures in China, Southeast Asia and Middle East during fiscal 2010-2012. The strategic products are ultra high voltage power cables, connecting accessories for high voltage power cables, magnet wires and telecom cables. At the same time, the firm will also follow the demand related to railways, roadways, home appliances and smart grids.

The 3-year investment plan is 7.5 billion yen for domestic plants and 5.5 billion yen for offshore plants. The Holdings will improve the productivities of domestic plants while expand the output capacities for magnet wire, cable connecting accessories and wiring harness for home appliances at overseas.