Furukawa Electric Co., Ltd. raised its profit outlook for the year to March 2027, telling investors that demand for data-center hardware is running well ahead of the plan it set in May.
The Tokyo-listed cable and components maker now expects operating profit of ¥123.0bn for the full year, up from a prior target of ¥95.0bn, on sales guidance lifted to ¥1.53tn from ¥1.46tn. For the six months to September, it raised its operating profit forecast to ¥49.5bn from ¥35.0bn and its net profit forecast to ¥42.5bn from ¥25.0bn.
| Metric | Previous Forecast (May) | Revised Forecast (August) |
|---|---|---|
| First-half sales | ¥700.0bn | ¥720.0bn |
| First-half operating profit | ¥35.0bn | ¥49.5bn |
| Full-year sales | ¥1.46tn | ¥1.53tn |
| Full-year operating profit | ¥95.0bn | ¥123.0bn |
Furukawa named two units as the drivers: Optical Solutions and Information Components, both selling more data-center-related product than expected, plus a rise in equity-method investment profit. First-quarter results published the same day show why. Optical Solutions sales rose 45.6% year-on-year to ¥60.0bn, swinging the segment from a loss a year earlier to a ¥9.2bn operating profit, while Information Components sales climbed 32.8% to ¥59.6bn and operating profit more than doubled to ¥7.4bn. Group-wide, consolidated operating profit for the quarter rose 205.4% to ¥25.5bn on sales up 24.3% to ¥365.2bn, a jump driven across all six of the company's segments rather than by the optical and components units alone.
Management expects the same pattern to hold in the second half: more data-center product sales and higher equity-method earnings layered on top of an already-upgraded base.