Hitachi Cable, Ltd. Business report FY2006
Business Highlights
(in millions of JPY) | FY2006 | FY2005 | Rate
of Change |
Factors |
Group | ||||
Sales | 544,244 | 425,092 | 28.0 | see note 1) below |
Operating income | 22,983 | 10,967 | 110.0 | see note 2) below |
Ordinary income | 20,449 | 12,042 | 70.0 | |
Net income | 8,662 | 4,940 | 75.0 | see note 3) below |
Wires and cables | ||||
Sales | 286,518 | 204,264 | 40.0 | see note 4) below |
Supplicated materials | ||||
Sales | 204,093 | 160,278 | 27.0 | see note 5) below |
Factors
1) Sales increased due to the Company raising the prices
of its electric wires, cables, copper alloys, and other products
as a result of a sharp rise in copper prices; as well as to strong
demand for electric wires and cables.
2) Income increased due to the high demand for electric wires and
cables. Also contributing to the rise in income was the Company's
ability to reduce the impact of expenses, as it was able to pass
a sharp rise in copper prices onto the selling prices of its products.
3) The Company posted 1.337 billion JPY in business structure
improvement costs and an extraordinary loss of 3.338 billion JPY.
4) The sales of winding wires increased mainly due to greater volume
of sales of parts used in the field of automotive information transmission.
5) Sales of automotive parts increased to 38.5 billion JPY due to
the strong sales of the Company's mainstay products, hose parts;
and other factors.
Withdrawal of subsidiary overseas
The Company announced that its Philippines subsidiary, Hitachi
Cable Philippines Inc., will withdraw from the manufacture and sales
of vinyl insulated wires for automotive (AV wiring), effective Oct.
31, 2006. Company cited much intensifying competition in the automotive
wiring business market in the Philippines and anticipated decline
of profit in the future as the primary reason for its decision to
withdraw from this business sector. (From a press release by the
company on Aug. 8 2006)
R&D
(in millions of JPY) | FY2006 | FY2005 | FY2004 |
Group | 10,000 | 10,832 | 9,592 |
Wires and cables | 2,016 | 2,887 | 2,486 |
Supplicated materials | 4,238 | 3,722 | 3,490 |
R&D structure
-The Company has positioned the Research and Development Group as the core framework for conducting its R&D activities. The Group consists of the Materials Technology Research and Development Center, the Electronic Materials Research and Development Center, the Photonics Research and Development Center, and the Cross Technology Development Center. Under this framework, the Company's R&D activities are conducted mainly in the ITS (Intelligent Transport System) Development Project Room and at the design and development divisions of each business headquarters.
- 繝サMaintains close cooperation and collaboration with R&D centers in the Hitachi Group, of course including Hitachi itself. On occasion, it conducts joint research with R&D centers operated by its customers and the government.
High-performance Material Division < automotive component field>
- Research and development of automotive hoses including brake hoses and power steering hoses, electronic components, and components for information devices.
- The major achievement in fiscal year 2006 that ended March 2007 was developing a two-layer separation roller for scanners.
Investment Activities
(in millions of JPY) | FY2006 | FY2005 | FY2004 |
Group | 21,455 | 19,691 | 17,669 |
Wires and cables | 5,521 | 4,917 | 5,278 |
Supplicated materials | 13,296 | 11,739 | 9,405 |
Wires and Cables Division
- Capital investments were made mainly to improve and expand the production facilities that produce electric wires for equipment; wiring parts; and winding wires.
High-performance materials Division
- Capital investments were made mainly to improve and expand the production facilities that produce semiconductor package materials and automotive parts.