The Cable Directory

The Furukawa Electric Co. Ltd released its financial results for 2007 October 24th Net sales were 1,104.7 billion Yen up 26.6% from 872.5 billion in 2006. Net income for the year was 29.8 Billion Yen up 16.8% from 25.5 Billion from 2006. Commenting on the results Mr. Hiroshi Ishihara President & Chief Executive Officer & Chief Operating Officer said: “In fiscal 2007, the Furukawa Electric Group achieved significant gains in revenues and profit compared with the previous fiscal year, with the expansionary trend in the global economy providing a tail wind. We saw particularly strong growth in sales and profit in the telecommunications segment, as demand steadily recovered in the telecommunications sector both at home and abroad, and as our consolidated overseas subsidiary OFS (OFS Fitel, LLC, and OFS BrightWave, LLC, optical fiber and optical fiber cable companies acquired from the U.S. company Lucent Technologies Inc. in 2001). which had previously operated in the red, returned to profitability as planned. In addition, Furukawa enjoyed steady sales in electronics components and automotive-related products and were also able to reflect the surge in the prices of bare metals such as copper and aluminum in the price of our products.

As a result, in relative terms, we accomplished our final goal for the Innovations 09 Medium-Term Management Plan of ¥1 trillion in net sales in the first year of the Plan. However, since the increase in net sales for fiscal 2007 was cosmetic, due to the rise in bare metal prices, we will seek to expand sales to achieve an actual increase in net sales.

Furthermore, based on expectations that bare metal prices will remain at high levels in the near future, we revised our net sales target for Innovations 09 to ¥1.25 trillion. In terms of profit, we attained growth in all five of our major segments, led by telecommunications.

Consolidated operating income significantly exceeded our goals for the first year of Innovations 09 at ¥53.6 billion, up 43.3% compared with the previous fiscal year. The Furukawa Electric Group also implemented the aggressive strategies, which saw active capital investment of ¥41.8 billion, reorganization of the bases of our automotive parts operations in China toward expanding overseas operations and M&A and alliances.

Meanwhile, we pursued our objectives of reducing interest-bearing debt, improving asset efficiency and securing funds required for investing in future growth by vigorously reducing sales receivables and inventory and by selling idle assets in a continued effort from the previous fiscal year. We also reorganized and integrated our consolidated subsidiaries to reinforce their management base, internal control system and management efficiency