Viscas Aims Targets 5% Recurring Profit Ratio in F2008

Viscas Corporation, a fifty-fifty joint venture between Furukawa Electric and Fujikura to produce and sell power and distribution cables mainly for power companies, aims to increase its recurring profit to sales ratio to 5% in fiscal 2008 ending March 2009. The firm also increases the new products sales ratio to 10% by improving new products development mainly targeting on overseas market. The shipment of power cable and related accessories is now active for China, Southeast Asia and the Middle and Near East. Under the firm demand, Viscas plans to nearly double the output equipment of power cable joint parts named “Cold Shrinkable Joint” toward this autumn.Viscas posted 64 billion yen of net sales and 1.4 billion yen of recurring profit in fiscal 2005 ended March 2006, both of which exceeded originally planned 48 billion yen and 600 million yen. The firm owed its favorable sales and profits to the active demand for power cable from overseas users and the recovery of capital investment by Japanese power companies.Power transmission cables for extra high voltages over 66 kV represented 50% of net sales in fiscal 2005, distribution cables for high voltages from 600V to 33 kV 35% and overhead transmission cables 15%. The overseas sales ratio was above 30%, while power transmission cable and related accessories unit sold 55% in offshore market.Cold Shrinkable Joint is silicon rubber made one-piece joint unit for ultra high power voltage cables. The inside diameter of units is expanded larger than the outside diameter of cable and cable jointers can eliminate the expansion work at cable jointing sites and shorten the assembly time to only a few minutes.