Japan Major Rerollers to Post Loss for F2008

Japanese 3 light metal rerollers expect net loss for fiscal 2008 ending March 2009 while Kobe Steel’s aluminium and copper unit expects operating loss. Their profitability gets worse due to slower demand and securities valuation loss. They start special action to improve the profitability through freezing capital expenditure and job cut.

Nippon Light Metal posted recurring loss and net loss for April-December. The firm posted operating loss for construction materials and flat and extrusion products while the processed products unit including aluminium foil posted marginal profit.

Kobe Steel’s aluminium and copper unit posted operating loss for April-December due to inventory valuation loss under lower metal prices. The unit expects 28 billion yen of operating loss for fiscal 2008 compared with 22 billion yen of profit for fiscal 2007.

Sumitomo Light Metal Industries posted net loss for April-December due to major securities valuation loss. The firm expects net loss for fiscal 2008, which is the first loss since fiscal 1998.

Furukawa-Sky Aluminum posted marginal profit for April-December. The profitability gets worsening sharply since autumn 2008. The firm expects net loss for fiscal 2008, which is the first loss since the listing.