Sumitomo Electric's FY 2012/13 net profit falls 35% y/y to USD402.1m

Sumitomo Electric has announced its consolidated financial results for the fiscal year (FY) that ended 31 March 2013.

Sumitomo Electric has announced its consolidated financial results for the fiscal year (FY) that ended 31 March 2013. The company's net profit plunged 35.5% year-on-year (y/y) to JPY37.9bn (USD402.1m) compared with JPY58.8bn (USD714.6m) during FY 2011/12. The company's operating profit also fell, by 11.7% y/y to JPY76.8bn (USD814.8m) from JPY86.9bn (USD1.1bn), on net sales revenues of JPY2.16trn (USD22.9bn), up 4.8% y/y. For the current FY ending in March 2014, the company has forecast a net profit of JPY60bn (USD636.6m) and an operating profit of JPY100bn (USD1.1bn), on sales of JPY2.4trn (USD25.5bn). Significance: Unlike most Japanese auto parts suppliers, Sumitomo Electric has reported a weak FY 2012/13 despite experiencing a windfall from the yen's persistent depreciation during the last fiscal quarter. Southeast Asia, and particularly Indonesia, will be critical to the company's plans this FY and beyond. Sumitomo is strengthening its automotive wire harness business in Indonesia to meet local demand, which is growing rapidly as a result of higher production by automakers in the country.