Japan Al Re-rollers Post Much Lower Profits in F2007

Japanese major aluminium re-rollers posted remarkably worse profits for fiscal 2007 ended March 2008 compared with the previous year except Showa Denko (Showa Denko’s fiscal year is from January to December). The re-rollers were suffered from higher material and fuel costs while the demand for construction materials turned rather slow in F2007.Nippon Light Metal posted net less in F2007. The operating loss for the construction material business was about 3 billion yen. The firm expects the profit recovery in F2008 with the improvement of Shin Nikkei Company, the main subsidiary in the construction material business unit.Kobe Steel posted higher net sales but lower profits year-on-year in F2007 due to the lower evaluation of the inventories. The firm plans the sale increase of the aluminium and copper rolled products in volume in F2008. However, the sales and profits are expected to become lower year-on-year with the price down of material metals.The sales and profits of Sumitomo Light Metal Industries were both lower in F2007 than F2008 due to the divestiture of the subsidiary, slower demand and higher energy cost.Furukawa-Sky Aluminum Corporation also posted lower profit in F2007, suffered from higher fuel and sub material costs. The firm estimates even lower profit in F2008 with the increase of depreciation cost though the demand is expected to recover from electric appliance related applications.Showa Denko could gain the higher profit in 2007 (calendar year) from 2006 thanks to the success in price hike of the aluminium products. Mitsubishi Aluminum was suffered from lower sales and profits in F2007. The sale volume decreased for plates, extrusions and foils.