Fujikura Targets Profit Recovery in Electronics & Auto Unit in F2008

Fujikura announced the annual results for fiscal 2007 ended March 2008 and the accounting estimations for fiscal 2008 on Wednesday, along which the firm aims the consolidated operating profit at 22 billion yen for F2008, up by 8.4% year-on-year. The firm aims to regain operating profits in the electronics & auto business division in F2008.Fujikura posted the consolidated net sales at 659.4 billion yen for F2007, up by 2.1% from F2007, and the consolidated operating profit at 20.3 billion yen, down by 41.2%. The electronics & auto division posted the operating loss at 1.9 billion yen through F2008, which became worse by 14.3 billion yen compared with F2007. The division includes flexible printed circuits (FPCs) and automotive wiring harnesses.Kazuhiko Ohashi, president of Fujikura, explained the division owed the large loss to confusions of productive management at PCTT, Thailand, one of Fujikura’s main subsidiaries to manufacture FPCs, and delays of facility relocations at ACE, Spain, an automotive wiring harness maker acquired by Fujikura in October 2006.ACE posted the annual operating loss at 5 billion yen in F2007. Fujikura estimates ACE’s operating loss would halve to 2.5 billion yen in F2008 and the profit could be gained in F2009.The firm estimates the annual net sales at 26.9 billion yen and the operating profit at 2.5 billion yen for the electronics & auto division in F2008. The sales and profits would improve thanks to the loss cut at ACE, large-lot order receptions for high-value-added FPCs and shipment start of auto wiring harnesses at Fujikura Zhuhai of China to Japanese automakers.