Hitachi Cable Aims Net Profit Regain in F2012

Hitachi Cable’s chief financial officer Mitsuaki Nishiyama emphasized at a press conference in Tokyo on Wednesday the firm sustains a solid intention to regain annual consolidated net profit in fiscal 2012 starting in April. Hitachi Cable announced on Wednesday the firm lowered its full-year financial forecast for fiscal 2011 mainly due to long and serious sinkage of semiconductor and electronics related markets. However, Mr. Nishiyama explained the firm’s current cost cut measures have progressed as planed or more effectively. By lowering fixed costs, Hitachi Cable tries to turn into the profitability in the next fiscal year.

Hitachi Cable reviewed its full-year consolidated financial forecasts for fiscal 2011 totally downward: net sales to 422 billion yen from previously forecasted 440 billion yen, operating profit to 1.5 billion yen from 5 billion yen, recurring profit to 500 million yen from 4 billion yen, and net loss to 25 billion yen from previously estimated loss at 22 billion yen.

Semiconductor and electronic appliance markets have globally deteriorated. Hitachi Cable’s sales are impacted for such items as electrical wire for electronic appliance, compound semiconductor, lead frame, copper strip and IC packaging materials. Mr. Nishiyama indicated the market condition might level off at the low level of January-March 2012 for a while.

Meanwhile, Mr. Nishiyama explained the group would be able to accumulate fixed cost down at approximately 12 billion yen at the end of March 2012 against fiscal 2010. The firm had tried to reduce fixed costs by total 10 billion yen during fiscal 2011.

Total 917 employees applied to the group’s voluntary early retirement program announced in late October. The planned application was about 650. The number of employment transfer, involuntary retirement and layoff of non-permanent workers also exceeds the planned downsizing. Thus Hitachi Cable would reduce domestic consolidated worker number by total 1,600 against originally planned 1,200. Labor cost will lower by approximately 9 billion yen for fiscal 2012.