Results of operations in fiscal 2011
The telecommunications segment faced weak domestic demand for communication cables throughout the fiscal year, despite steady sales of system equipment for cable television companies in preparation for the complete shift to terrestrial digital broadcasting in July. In overseas markets, while demand for optical fibers for China and other parts of Asia were sluggish, OFS Fitel, LLC in the United States and FISA in Brazil remained strong in areas such as communication cables for mobile phones and increased their sales, which resulted in consolidated sales of 149.3 billion yen, or a year-on-year increase of 10.2%, in this segment. Consolidated operating income was 9.6 billion yen, down 2.6% year on year, primarily because of declines in product prices despite the effect of fixed cost cuts. Non-consolidated sales decreased 2.3% year on year, to 64.5 billion yen. In June last year, OFS Fitel, LLC in the United States reached an agreement with Jiangsu Hengtong Photoelectric Stock Co., Ltd. in China on the establishment of a joint venture that would manufacture base materials of optical fibers. This will allow continuous production from optical fiber base materials in the upstream stage to optical fiber cables in the downstream stage in China, the world's largest optical fiber market. This, in turn, will drive increased overseas sales.
Net sales
Operating income
(Years ended March 31)