Sumitomo Electric Industries Starts its New Structural Reform for its Businesses
Sumitomo Electric Industries starts its new structural reform for its businesses including alliances with the other firms after the second half of the current fiscal year. It will carry out the reform of the curtrent potentially problematic businesses to strengthen further the power of increasing the income. For the time being, the firm will reform 4 kinds of businesses including optical parts, etc. The firm calls it 'the Second Stage of the Structural Reform.'

The firm carried out the structural reform one after another by the previous period such as an electric wire cable, coil, brake business, and construction, etc. Additionally, the firm announced the merge of antenna business with Furukawa Electric in the first half of fiscal 2003.

At the same time, in the wiring harness business, the production shifted to Mexico for Northern America, East Europe for Europe, and to Southeast Asia from Japan for Asia; the firm promoted the aggressive restructuring.

The firm posted 49 billion yen for special loss generated by the structural reform in the previous period. It should go into the black as soon as possible. However, it found some of its potentially problematic businesses..

Sumitomo Electric Industries