Fujiden Aims to Expand Electric Cable Sales Margin by 10% in F2006

Japanese major electric wire and cable wholesaler, Fujiden Ltd. aims to improve its recurring profit ratio to 3% to 53 billion yen of net sales in fiscal 2006 ending March 2007 from around 2% in fiscal 2005, when the net sales is estimated to increase by 6% in fiscal 2006 from fiscal 2005. The firm needs to raise its reselling margin of electric cable for secondary wholesalers by average 10% within fiscal 2006 in order to gain moderate delivery costs and to achieve 3% of recurring profit ratio, when electric cable for secondary wholesalers represents around 80% of Fujiden’s total sales.Fujiden expects the sales volume of electric wire and cable would increase by 4% in copper volume in fiscal 2006 from fiscal 2005, while Japanese total electric cable demand for wholesalers and construction usage is forecasted to increase by 4.2% to record 408,000 tonnes in fiscal 2006 from the previous year, according to Japanese Electric Wire & Cable Makers’ Association.There have been large construction projects such for manufacturing factories more than middle- and small-sized constructions in Japan in recent 2 years. Electric cable for large construction projects are delivered from cable makers or distributors to Japanese major electric contractors including Kandenko and Kinden Corporation, not by way of wholesalers. The wholesalers including Fujiden could not receive benefit so much even though domestic electric cable demand maintained strong totally.