Business Description

Sumitomo Electric Industries, Ltd is engaged in producing and selling electrical wires and other communication wiring products. The company was established in April 1897, and its headquarters are in Osaka in Japan. It has the following business segments- Infocommunications Automotive, Electronics, Environment, Energy, & Others. Infocommunications offers optical fiber cables, optical fiber fusion splicers, optical data links, and other components.

Electronics offers electronic wires, compound semiconductors, and materials for electronic components. The Automotive segment sells wiring harnesses and other automotive parts. Infocommunications offers optical fiber cables, optical data links, and other components. The Industrial Materials & Others segment include special steel wires, cubic boron nitri, cutting tools, and sintered pieces. Environment and Energy include copper wire rods, power systems, and supervisory control equipment.

Key Financials

Revenue (US$ Mn):

• US$ 25,352 Mn was the annual revenue generated by Sumitomo Electric Industries, Ltd in 2021
• Sumitomo Electric Industries, Ltd’s annual revenue for 2020 was US$ 30,107 Mn, a 2.96% increase from 2019
• From 2018’s annual revenues, Sumitomo Electric Industries, Ltd registered a 4.09% increase in 2019, amounting to US$ 29,242 Mn
• Total revenue of US$ 28,093 Mn was generated in 2018 by Sumitomo Electric Industries, Ltd

Operating Income (US$ Mn):

• Sumitomo Electric Industries, Ltd’s operating income for 2021 was US$ 990 Mn, a -19.71% decrease from 2020
• The operating income generated by Sumitomo Electric Industries, Ltd in 2020 was US$ 1,233 Mn
• At a -3.04% decrease, Sumitomo Electric Industries, Ltd’s operating income of US$ 1,530 Mn was indexed in 2019
• Sumitomo Electric Industries, Ltd generated an operating income of US$ 1,578 Mn in 2018

Net Income (US$ Mn):

• US$ 489 Mn was the net income generated by Sumitomo Electric Industries, Ltd in 2021
• Sumitomo Electric Industries, Ltd’s net income for 2020 was US$ 705 Mn, a -35.08% decrease from 2019
• From 2018’s net incomes, Sumitomo Electric Industries, Ltd registered a -1% decrease in 2019, amounting to US$ 1,086 Mn
• A net income of US$ 1,097 Mn was generated in 2018 by Sumitomo Electric Industries, Ltd

Operating Margin %:

• Sumitomo Electric Industries, Ltd’s operating margin for 2021 was 4%, a -4.88% decrease from 2020
• The operating margin generated by Sumitomo Electric Industries, Ltd in 2020 was 4%
• At a -7.14% decrease, Sumitomo Electric Industries, Ltd’s operating margin of 5% was indexed in 2019
• Sumitomo Electric Industries, Ltd generated an operating margin of 6% in 2018

Gross Margin %:

• Sumitomo Electric Industries, Ltd’s gross margin for 2021 was 18%, a 2.25% increase from 2020
• The gross margin generated by Sumitomo Electric Industries, Ltd in 2020 was 18%
• At a -1.08% decrease, Sumitomo Electric Industries, Ltd’s gross margin of 18% was indexed in 2019
• Sumitomo Electric Industries, Ltd generated a gross margin of 19% in 2018

SWOT Analysis

Strengths

Territorial Diversity

A wide geographic presence enables the company to serve a wide customer base, which results in improved topline performance. The company’s wide geographic operations help in mitigating various risks associated with dependence on select regions. Sumitomo Electric’s business operations are spread across the Americas, Asia, and Europe.

The company has established offices and subsidiaries in several locations worldwide to distribute its products efficiently and to reach out to a large customer base. It classifies business operations into four geographic regions: Japan, Asia, Europe, and others, and the Americas. In FY2020, the Japan segment accounted for 49.1% of the segment’s revenue followed by Asia (29%), the Americas (13.5%) and Europe, and others (8.4%).

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