Showa Denko Revises Down Target for 2010

Showa Denko revised down the target of consolidated operation profit to 40 billion yen for 2010 from 100 billion yen of previous estimation, announced on Monday. The firm revised down the sales target to 900 billion yen from 1 trillion yen while the firm posted 1.039 trillion yen of sales and 26.8 billion yen of operating profit for 2008 and estimates 800 billion yen of sales and 17 billion yen of operating profit for 2009.

Showa Denko reduces the capital expenditure for 2009 to 44 billion yen from 54.8 billion yen for 2008 and reduces the costs by 12 billion yen. The firm withdraws from the production of aluminium bottle and reforms aluminium business, including pursuing alliance while the firm carries out re-formation of the production lines of commodity rolled products and extrusions, restructuring of production site in North America and expanding production capacity in Asia for heat exchanger for automobile air conditioner and establishing global production network of cylinders for laser printers to meet growing demand.

As for hard disk media, Showa Denko consolidates HD-related operations with HOYA’s to strengthen the business for notebook personal computer.