Sumiden Hitachi Cable Targets Y/Y Same Volume Shipment in 2H, F2008

Sumiden Hitachi Cable (HS&T), Japanese largest sales company of building power cables invested by Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable, targets the same cable shipment volume through fiscal 2008 (Apr08-Mar09) as fiscal 2007. HS&T’s cable shipment in the first half of F2008 decreased by 3% in copper weight compared with the corresponding period of F2007, while which was lower by 13% than the original sales plan. The firm expects the shipment could maintain stable for large-lot construction projects conducted by large electric contractors.

HS&T explained Japanese cable makers’ total shipment of building power cables, especially for 3 major items including XLPE cables, IV cables (vinyl insulated electric cables) and CVV cables (PVC sheathed and insulated control cables), seemed to decrease by about 8% in 1H of F2008 compared with 1H of F2007. HS&T’s shipment down was narrower than the market decline. However, Masao Ebisutani, president of HS&T, described about the background that the firm’s cable shipment decreased by 2-digit year-on-year in 1H of F2007. The actual market condition was severe in 1H of F2008 especially due to the downturn of condominium sales.

HS&T holds several large-lot order backlogs whose shipment is scheduled during 2H of F2008, including the shipment for super large plants of flat-panel televisions around Osaka, Japan. There are less large construction projects around Tokyo in 2H where the demand for building power cables is also weak from middle- and small-sized constructions. Electric contractors are waiting and seeing when to purchase power cables at the cheapest price with expectations that copper metal price might decrease more.