Yonezawa Electric Wire Seeks Better Profitability to F2008

Yamagata based Yonezawa Electric Wire Company, which belongs to Fujikura Group, aims to increase the consolidated recurring profit to 1.7 billion yen in fiscal 2008 ending March 2009 from estimated 600 million yen in fiscal 2006 and to improve the net profit margin to 3% in fiscal 2008 from estimated above 1% in fiscal 2006 along its 3-year management plan toward fiscal 2008. The firm strengthens its profitability through the expansion of the auto wiring harness and electric component businesses both domestically and abroad.Yonezawa Electric Wire plans to strengthen the cost competitiveness for its auto wiring harness business by reinforcement of the offshore subsidiaries in China, Thailand and Vietnam and by the production system improvement at the domestic plants. The firm targets the top company to produce electric wire and cable in Fujikura Group through the restructuring of the production system among the plants.Yonezawa Electri Wire also expects the growth of the electric component business along the 3-year management plan. The firm aims to grow up the processed electronic wire business to be profit-making and to start commercial production of coil products in fiscal 2006. The firm seeks to increase its own sales products for automobile related fields through the combination of auto wiring harness and electronic components and the processing of electronic components into modules. The firm also expects new products such as ceramic coated substrate and optical connecting components.The firm postpones the sales expansion to the profitability improvement along the 3-year management plan, while the firm targets 57.5 billion yen of consolidated net sales in fiscal 2008, which would triple from fiscal 2005.