Sumitomo Electric Posts Record Profit for F2005

Sumitomo Electric Industries reported the consolidated sales increased by 15.3% to 2.007 trillion yen for fiscal 2005 ended March 2006 from fiscal 2004. The sales reached 2 trillion yen for the fist time thanks to firm demand for automobile and information technology industry along with recovering telecommunication industry. The recurring profit increased by 22.4% to record 113.194 billion yen and the net profit increased by 59.7% to record 58.346 billion yen. The sales increased by 18.6% to 882.096 billion yen for automobile business in fiscal 2005 from fiscal 2004 thanks to higher demand for wiring harness. The sales increased by 17.2% to 249.218 billion yen for telecommunication due to higher demand for network system, optical fiber cable and devices and parts for optical networking. The telecommunication unit regained profitability when the operating profit improved by 20.174 billion yen to 8.906 billion yen. The electronics unit increased the sales by 12.4% to 306.553 billion yen for fiscal 2005 from fiscal 2004 due to higher demand for electronic and machinery wiring, heat sink and compound semiconductor. The engineering unit increased the sales by 1.5% to 204.46 billion yen. The industrial materials and other businesses increased the sales by 20.1% to 364.807 billion yen thanks to higher demand for electrical conduction products, carbide tool and diamond products and special wire products. The offshore sales increased by 29.1% to 673.965 billion yen for fiscal 2005 from fiscal 2004. The sales represented 14.4% of total sales for Americas, 13.1% for Asia and 6.1% for others. The firm increases the dividend by 3 yen to annual 13 yen per share. The firm will increase the dividend by 1 yen to 14 yen for fiscal 2006.