Tatsuta Electric Wire & Cable showed the strong profitability when the firm posted higher profit in April-June while the competitors were suffered from slower construction demand and higher cost. The president Shuya Fujie, however, warns the full year operating profit could short for targeted 2.6 billion yen due to higher raw materials cost and higher depreciation under new rule. The firm tries to improve the profitability by following major plant building projects. Mr. Fujie said the electric cable unit expects better sales volume and margin in July-September compared with April-June when the construction demand recovers slightly for private sector including Sharp Corporation’s new plant in Sakai, Osaka and Matsushita Electric Industrial’s new plant in Amagasaki, Hyogo. Mr. Fujie said the electronic materials sales improve for electromagnetic shielding film for cell phone and copper bonding wire as substitute for high priced gold wire. Mr. Fujie said the Osaka plant will reach full capacity operation soon due to electric cable supply for major construction projects while the plant operates at around 80% of the capacity after 30% expansion.
Japan Steel Scrap Composite Prices (Sangyo Press)
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