Hitachi Cable to Post 53B Yen Net Loss in F2008

Hitachi Cable announced on Friday the firm estimates the full year consolidated net loss expands to 53 billion yen for fiscal 2008 ending March 2009 from previously forecasted 5 billion yen. Plunging copper price expands the valuation loss along with slower demand from automobiles and semiconductors. The firm tries to improve the profitability through reshuffle of production network and job cut.

The firm decided to stop production of automotive hose parts at Hitachi Cable Indiana, USA consolidating the production into 2 plants in Florida and Mexico. Hitachi Cable Indiana focuses on power harness for hybrid vehicle and electronics parts. The firm delays the start of Vietnamese operation to make electric wire for machinery as well.

The firm reduces domestic temporally workforce from 2,000 to 1,200 by end of March. The firm expects the profitability improves by 8 billion yen through the series of restructuring including reshuffle of tape automated bonding operations. The firm starts additional actions to improve the profitability including reshuffling plants and offices.

The firm revised the consolidated results outlook downward to 20 billion yen of operating loss and 23 billion yen of recurring loss with 480 billion yen of sales for the year to March 2009 compared with former estimated 1 billion yen of operating profit and recurring profit with 540 billion yen of sales.