Hitachi Cable announced on Friday the firm withdraws from optical submarine cable business under the revised 3-year plan through fiscal 2012 ending March 2013. The firm improves the profitability by restructuring loss making business. As a part of the effort, the firm also reorganizes businesses of telecommunication cable, packaging materials and copper tube. The firm reduces around 1,200 of manpower in domestic business while the firm reshuffles domestic and offshore operations. Through the actions, the firm targets 10 billion yen of lower cost in fiscal 2012 compared with fiscal 2010. The firm tries to seek growth in core business areas including industrial infrastructure, electrical power infrastructure and telecommunication infrastructure.
The firm targets 20 billion yen of consolidated recurring profit with 440 billion yen of annual sales in fiscal 2012 compared with targeted 7 billion yen of recurring profit with 460 billion yen of sales in fiscal 2011. The firm will post 24 billion yen of onetime loss for the restructuring in fiscal 2011 for better future profitability. The firm withdraws from optical submarine cable business in September 2011. The firm reorganizes domestic plants for telecommunication cable in fiscal 2011 while the firm keeps optical cable making joint venture with Corning Cable Systems of USA. The firm also reorganizes domestic copper tube business and packaging business in fiscal 2011. The firm reduces the domestic manpower by around 1,200 in fiscal 2011 while the firm keeps offshore manpower to expand the business. The firm reduces the offshore company by 1 to 2 in UK and by 1 to 2 in USA in fiscal 2011 and reorganizes other business in Southeast Asia in fiscal 2012. The firm keeps focusing on infrastructure business under the mid-term plan. The firm increases the sales weight of the core business from 55% in fiscal 2010 to 65% in fiscal 2012.