Japanese major 5 electric wire makers posted severer results in April-June from same period of 2010 when the demand decreased due to the major earthquake and higher yen rate. Four of the makers left the profit target unchanged for the year ending March 2012 while Fujikura revised the target upward.
The major earthquake reduced the automobile and electronic machinery demand. Japanese largest wiring harness maker of Sumitomo Electric Industries posted 118 million yen of operating loss for automotive unit for April-June compared with 15.82 billion yen of profit in same period of 2010. Furukawa Electric posted 100 million yen of operating loss for electronics and automotive unit. Fujikura posted 600 million yen of operating loss for electronics and auto unit. SWCC Showa Holdings posted 600 million yen of operating loss for energy system unit for April-June due to slower demand for high voltage power cable. Hitachi Cable posted higher operating profit from same period of 2010 due to 2.2 billion yen of cost cutting. They expect higher demand for automobile parts in second half of fiscal 2011 ending March 2012. However, their business condition could be severe due to delay of rebuilding demand for the major earthquake damage and high yen rate along with lower capital expenditure by Japanese power companies.Japan Steel Scrap Composite Prices (Sangyo Press)
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