Japan Nonferrous Metal Companies Suffered from Profit Down in 1H

Japanese nonferrous metal companies posted much lower profits for the first half of fiscal 2008 (Apr-Sep) than the corresponding period of fiscal 2007. Their profits were impacted by underlying trend of stronger yen, higher fuel and substantial material costs, plunge down of base metal prices, increasing depreciation or economy slowdown.

Mitsubishi Materials’ consolidated operating profit shrank by 29% year-on-year to 36.3 billion yen for 1H. The recurring profit decreased by 30% and the net profit dropped by 49%. As to the copper smelting business unit, the profit was impacted by worse ore purchasing terms, stronger yen exchange rate and furnace maintenance at Indonesian subsidiary.

Toho Zinc’s consolidated recurring profit was cut down by 54.8% to 4.3 billion yen for 1H from a year earlier. The firm’s zinc product sales decreased by 2.3% to 69,092 tonnes in 1H from a year earlier while the sales decreased by 47.6% to 16.5 billion yen due to dropdown of overseas zinc price and stronger yen exchange rate. The lead product sales increased by 0.2% to 44,344 tonnes while the sales value declined by 21.2% to 11.2 billion yen.

Sumitomo Light Metal Industries barely gained consolidated net profit for 1H. However, the recurring profit dropped down by 80% year-on-year. The sales of aluminium plates increased by 7,000 tonnes to 172,000 tonnes, aluminium extrusions decreased by 1,000 tonnes to 22,000 tonnes and rolled copper products decreased by 3,000 tonnes to 26,000 tonnes.

Furukawa-Sky Aluminum was suffered from profit down for 2 half years in a row and by 2-digit percentage points compared with the previous half year, despite of sales increase in both volume and value. The profit was impacted by cost upsurge for substantial materials such as fuels and magnesium.