Union Tool, the global top maker of cemented carbide drills for printed circuit boards (PCB drills), announced at a press conference on 18 July the firm estimates its consolidated PCB drill sales volume at 326 million drills through fiscal 2008 ending November 2008, increasing by 13% year-on-year. The firm expects the consolidated recurring profit would decrease year-on-year through F2008 due to severe price down in Asian market despite of steady growth of the sales volume.The firm explained global demand for PCB drill slowed down in the half year by May 2008. Union Tool estimates the global demand was average 74.4 million drills per month during Dec07-May08, decreasing by about 10% from 83 million drills per month through F2007 (Oct06-Nov07). Union Tool’s sales volume decreased by about 5% during the first half of F2008 compared with the previous half year.The firm said the market related to cellular phones, digital appliances and automobiles became slower during 1H. On the other hand, demand was relatively steady from MPU package manufacturers, especially for PCB drills with less than 0.1 millimeter diameter edge to manufacture flash memories.Price down of PCB drill is very severe in Taiwan and China. The firm explained the averaged price down rate was 11% in Taiwan and 15% in Shanghai during 1H, which was 14.5% in Taiwan and 2.9% in Shanghai through F2007. Union Tool’s consolidated recurring profit is expected to down by 1.4% year-on-year to 8.2 billion yen through F2008 impacted by the price down.
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