Yazaki Posts Net Loss Mainly Due to Cartel Surcharge in F2010

Yazaki Corporation, Japanese major automotive component and electric cable maker, posted 16 billion yen of non-consolidated net loss for a full year of fiscal 2010 ended in June 2011, mainly due to 29.9 billion yen of extraordinary loss. The firm posted extraordinary loss related to surcharge payment against domestic cartel behaviors at total 19.4 billion yen and turned into the red again after fiscal 2008 when car market deteriorated after Lehman Shock. Non-consolidated full-year net sales were 628.3 billion yen in fiscal 2010, decreasing by 5.9% from fiscal 2010, with 42% lower at 11.8 billion yen of recurring profit.

Non-consolidated full-year net sales for automotive component business unit, including automotive wiring harness, were 532.2 billion yen, decreasing by 8.1% year-on-year. Yazaki is the world’s top supplier of automotive wiring harness. In domestic market, governmental incentive program for eco friendly cars ceased and car production temporarily dropped down after the Japan Earthquake.

As for electric cable business unit, mainly for domestic construction market and power companies, non-consolidated full-year net sales increased by 21.5% to 64.5 billion yen in fiscal 2010 from fiscal 2009. Total demand slightly improved while electrolytic copper market price, the indicator, surged up.

Extraordinary loss related to surcharge payment against domestic cartels was 7.3 billion yen actual payment for a case of building wire’s major three items, 2.5 billion yen allowance for a case of VVF cable (vinyl insulated vinyl sheathed flat-type cable) and 9.7 billion yen allowance for a case of automotive wiring harness.

Yazaki Group’s consolidated net sales increased by 7.3% to 1.0903 trillion yen in fiscal 2010 from fiscal 2009. By geographical areas, sales in Japan represented 45% in total revenue while sales in Americas accounted for 26%. Australia and Asia totaled 15% while Europe represented 14%. Yazaki’s overseas group companies mostly manufactures and sells automotive wiring harness and components.