Nishi Nippon Electric Wire & Cable Regains Profitability in F2005

Nishi Nippon Electric Wire & Cable, the affiliate of Fujikura based in Oita City of Fukuoka Prefecture, Japan, increased the net sales by 11.3% in fiscal 2005 ended March 2006 from the previous year and turned the deficit into the profits thanks to the favorable demand conditions in Kyusyu region. The firm posted 30.4 billion yen of net sales, 461 million yen of recurring profit and 265 million yen of net income in fiscal 2005. Takayuki Koyama, president of the firm, explained the current business conditions and the management target for fiscal 2006 to Japan Metal Bulletin.Mr. Koyama said the demand for power distribution cable, the main product of the firm, was brisk for the electric power company in Kyusyu region in fiscal 2005 when the power company implemented the capital investment as originally planned through the year. He said the demand was more active than expected for telecommunication related products including office cable and optical drop cable. Demand for industrial cable was fine thanks to the active construction of residences and large plants related to automobile and digital appliances in the region.Nishi Nippon Electric Wire & Cable plans mid-term capital investment during 5 years from fiscal 2006, he said. The firm will invest average 600-700 million yen per year to renew productive equipment and infrastructures of its plants. Mr. Koyama indicated the firm would apply 80% of the expenditure to productive machines and 20% to infrastructures.Mr. Koyama expected the capital investments would keep the same level at the power company and telecom carriers in Kyusyu region through fiscal 2006 from fiscal 2005, though the demand for the telecom carriers was slow in April-June 2006. He expected industrial cable demand would also keep the level for building constructions in fiscal 2006 as firm as fiscal 2005, when the firm could achieve 800 tonnes of CV cable (cross-linked polyethylene insulated and vinyl sheathed cable) production per month to ship for Fujikura Dia Cable, the joint venture between Fujikura and Mitsubishi Cable Industries to sell industrial cable. He said the overseas production of branch cable is also in the favorable condition at Nishiden (Malaysia) Sdn. Bhd. and the subsidiary could turn the deficit into the profit in fiscal 2006.