Japan Major Electric Wire Makers Post Better Results

Sumitomo Electric Industries and Furukawa Electric posted consolidated recurring profit for April-December 2009, according to Japanese major 6 electric wire makers’ results. Sumitomo Electric, Furukawa Electric, Fujikura and Mitsubishi Cable Industries posted recurring profit for October-December when automobile demand recovers along with cost cutting effort. Furukawa Electric, Fujikura and Mitsubishi Cable expect recurring profit for the year ending March 2010.

Hitachi Cable and SWCC Showa Holdings expect consolidated recurring loss for the year ending March 2010 but the all 6 makers expect better results for the full year than previous year. They improved the profitability under the severe market condition when they lowered breakeven point through cost cutting. The cost cutting target is 48.5 billion yen for Sumitomo Electric, 16 billion yen for Furukawa Electric, 17.5 billion yen for Hitachi Cable and 2.5 billion yen for SWCC Showa for the year.

Their better results are also supported by higher demand for automobile and electronics industry while Sumitomo Electric, Furukawa Electric and Fujikura gained from firm export demand for optical fiber. However, the market condition was severe for the domestic market especially for construction industry while the higher yen rate impacted on the profitability.

They expect firm demand for environmental friendly vehicle, offshore power and communication infrastructure projects, smart phone and hard disc for January-March. However, the demand is peaking for electronics devices and domestic communication infrastructure while the profitability is impacted by lower selling price and high yen rate.