January 4, 2010
Happy New Year to one and all!
I hope you all enjoyed a wonderful New Year’s holiday. I would like to once again express my sincere thanks for your diligent hard work over the course of this last year.
1. Furukawa Electric in 2009
Looking back at last year, although it was a milestone for us as the 125th year since our founding, we started the year amidst a global economic downturn prompted by the Lehman Shock. We faced an unprecedented decline in sales in our March quarter and posted very substantial losses. We remained in the red for our June quarter, before finally returning to profitability for the September quarter, for the first time in three quarters. I express my gratitude to all of you for understanding and cooperating with our extremely unusual wage cuts during this period.
Aided by economic stimulus measures taken around the world, we have sustained our recovery and posted operating income on a non-consolidated basis for September, October and November. While our profit levels are low, our Company on a non-consolidated basis recorded operating income for three consecutive months, so as I had promised everyone, I have ordered the wage cuts that we introduced last August to be lifted starting with the January payments this year. I once again thank you all sincerely for your efforts.
Concerning safety, however, the number of incidents that occurred last fiscal year greatly exceeded the target figures. However, the Japan Fair Trade Commission conducted onsite inspections for the second consecutive year. Safety and legal compliance must always come first. We will continue to address legal compliance with extreme care as critical management issues.
2.Change means opportunity
While little growth is expected in the domestic market, growth overseas in developing nations is significant, primarily in Asian markets such as China and India. Witnessing the vibrancy of these countries on my business trips, I am convinced that the time has finally come for Asia. In line with this trend, we held our group's first technology exhibition overseas last year in Thailand. If we can aim for the “volume zone”- where demand grows rapidly - with our mid-range products featuring simple features and low cost, rather than the products we conventionally sell in Japan, I believe we'll have the chance to give our Company a true global presence.
Industry, meanwhile, is entering an age in which it must create a low-carbon society by heightening energy efficiency. New concepts such as the smart grid and next-generation vehicles are being developed, and if our efforts can produce results by expanding sales of our eco-friendly products and bolstering our processing technology research that seeks to conserve energy, I think we will have the potential to achieve renewed growth.
How do we anticipate this change and achieve rapid innovation? This year we are working on our new medium-term plan, and so is a major crossroads for Furukawa Electric.
3. Two things I ask of you
With these circumstances in mind, I would like to use this New Year message to ask of you two things in particular for this year.
First, raise your “antennas” high and aim them outwards, to detect changes in society. Change means opportunity. I want you to forecast the changes in the coming age, relate them to your business, and transform them into opportunities.
And second, change with speed. No matter how well you read change, if you can't move quickly enough in advance, you will be left behind. Society is changing at an ever-greater clip, and I want each one of you to be independent and keep reminding yourself to embrace change.
Furukawa Electric has faced and overcome many challenges in its long history. I very much want to see us hone our material strengths, expand globally, and contribute to achieving a truly fulfilling and sustainable society.
Finally, I hope that all of you will work with cheer and vigor again this year and continue to pay close attention to health and safety.
Thank you for your attention.