Hitachi Cable, Ltd. Business Report FY2010

Business Highlights

Financial Overview

(in millions of JPY)
Mar. 2011)
FY2009 Rate of
Change (%)
Sales 419,279 372,450 12.6
Operating income 788 (6,381) - -
Ordinary income (1,765) (4,939) - -
Net income (12,993) (9,110) - -
 Electronic & Automotive Products
Sales 344,695 281,269 22.5
Sales of automotive parts significantly grew year-on-year. During the third quarter, sales in Japan decreased slightly due to eco-car sales incentives coming to an end. However, during the fourth quarter, demand came back, even though the Great East Japan Earthquake had a negative impact on auto production. In addition to this, performance at subsidiaries outside Japan was favorable throughout the entire year.
Operating income 1,962 (2,266) - -

Recent Developments Outside Japan

The Company announced that it will merge Hitachi Cable Indiana, Inc. and Hitachi Cable Florida, Inc., its consolidated subsidiaries in North America, effective January 1, 2011. At the same time, the Group will establish Hitachi Cable Automotive Products USA, Inc. based on Hitachi Cable Indiana, which is the surviving company from the merger. The consolidation is part of the company's reorganization plans to streamline its auto parts business in North America. Hitachi Cable will thereby integrate its sales and production operations in the region into two companies: one each in the U.S.A. and Mexico. With this move, it aims to generate synergies such as cost reductions in materials procurement and business management, as well as improved efficiency in technology development and marketing activities. Hitachi Cable Automotive Products USA will have a workforce of some 500. Sales are expected to reach 138 million dollars (approximately 11.7 billion yen) in the year ending in March 2012. (From an article in the Nikkan Jidosha Shimbun on November. 25, 2010)

>>>Financial Forecast for the Next Fiscal Year (Sales, Operating Income etc.)


R&D Expenditure

(in millions of JPY)
  FY2010 FY2009 FY2008
Group  9,034 9,612 11,078
Electronic & Automotive Products 2,632 - -
Wires and cables  - 1,404 1,500
Supplicated materials  - 3,282 4,292

R&D Structure

-The Company conducts its R&D activities at its technical headquarters (technical center) and at the development departments in its business headquarters.
-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.

R&D Activities

Electronic & Automotive Products Division
In order to meet the need for home-use battery-charging for EVs, and expand the infrastructure of battery-charging equipment, the Company developed wall-mounted battery-chargers for electric vehicles, launching sales of these in the summer of 2011. These devices are vastly superior in terms of safety and handling. The battery-charging devices, which are compliant with SAE J1772 international standards, consist of a charging gun, charging cable, and a Charge Circuit Interrupt Device (CCID).

 A majority of next-generation vehicles use Permanent Magnet Synchronous Motors as the drive motors, which are controlled by inverters. The Company Group has developed ultra-heat-resistant, self-lubricating enamel wires, making it possible for motors to be built smaller, fulfill their original use, and still be highly powerful. Nowadays, in order to meet the need for further improving the reliability of motors in terms of making them smaller in size but more powerful, the Company developed its KMKED22A, an enamel wire with anti-inverter-surge properties, raising expectations for higher porosity in special flat wires. The company put this new wire to commercial use, which became the world’s first anti-inverter-surge polyamide-imide enamel wire.

The Company announced that it has developed a copper material for versatile use that has properties equivalent to copper with high purity. The supplier of copper products has succeeded in drawing out latent excellent properties from the lubber material by adding traces of titan to eliminate impurities. The new copper material called “HiFC” can be manufactured by an economical, continuous rolling process, leading to higher performance and lower cost. Hitachi Cable expects it will be used for electric cables and wires widely in the areas of information and communications services. (From an article in the Nikkan Jidosha Shimbun on January 24, 2011)

Investment Activities

Capital Investment

(in millions of JPY)
  FY2010 FY2009 FY2008
Group  10,153 13,862 30,382
Electronic & Automotive Products 5,004 - -
Wires and cables  - 5,603 10,087
Supplicated materials  - 5,815 15,535

Electronic & Automotive Products
The Company invested mainly to expand facilities and equipment producing wires for equipment/devices and wiring parts, and in mainly equipment designed to handle coiling operations.