Sumiden Hitachi Cable to Regain Profitable in F2010

Sumiden Hitachi Cable, which is construction electric wire joint sales company of Hitachi Cable, Sumitomo Electric Industries and Tatsuta Electric Wire & Cable, expects the electric wire shipment in copper volume in fiscal 2010 starting April will be in line with fiscal 2009. The joint sales firm expects the domestic market will decrease by 2% to averaged 13,500 tonnes per month in copper volume for major 3 items including XLPE cable, wire insulated by vinyl and control-use vinyl insulated vinyl sheathed cable in April-September from same period of 2009. The firm tries to secure recurring profit for fiscal 2010 while the results will be loss for fiscal 2009 as fiscal 2008.

The leading sales company has estimated around 30% share in domestic construction electric wire market. The firm expects the shipment decreases by 20% in fiscal 2009 from fiscal 2008. The sales will decrease by around 30% to 64 billion yen mainly due to lower copper price in the first half year.

The domestic market for major 3 items decreased by 22% to monthly average 13,770 tonnes in first half of fiscal 2009 from same period of fiscal 2008. The firm expects the demand decreases by 18% to 14,130 tonnes in the second half of fiscal 2009 from same period of fiscal 2008.

The firm expects the demand in fiscal 2010 is in line with fiscal 2009. The firm tries to secure 32 billion yen of sales for the first half year based on 700,000 yen per tonne of averaged copper ingot price. The sales are 6% higher than same period of fiscal 2009.