Sumiden Hitachi Cable Building Cable Shipment Downs 4.5% in 1QF2010

Building wire and cable shipment decreased by 4.5% in volume of copper for April-June 2010 from a year earlier at Sumiden Hitachi Cable, Japanese largest joint sales company of building wires and cables controlled by Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable. Sumiden Hitachi Cable posted recurring loss in April-June due to low shipment volume though the firm aims to return into the black for a full year of fiscal 2010 ending in March 2011.

Sumiden Hitachi Cable seems to hold above 30% sales share in Japanese building wire and cable market. The firm previously estimated domestic cable makers’ total shipment of major 3 items including low voltage XLPE cable at average 13,500 tonnes of copper per month for April-September 2010, decreasing by 2% from the same period of 2009. The actual market volume seemed at around 12,200 tonnes of copper per month for April-June.

Mr. Masao Ebisutani, president of Sumiden Hitachi Cable, explained capital expenditures are gradually recovering in Japanese automobile and semiconductor industries but actual demand for power cables is unlikely to turn upward in a short term. He said cable demand maintains stagnant from condominiums, warehouses and shopping centers.

Sumiden Hitachi Cable’s loss was decreasing in April-June compared with the second half of fiscal 2009 thanks to stable copper market price. However, Mr. Ebisutani said total loss is still large for production and sales divisions including 9 cable makers of parent 3 company groups. Group makers are suffered from low operation rate. Sumiden Hitachi Cable tries to keep the annual shipment volume as much as in fiscal 2009 and reduce distribution costs in order to gain annual profit for fiscal 2010.