Kobe Steel Posts Lower Profit for Aluminium & Copper Segment in 1H

Kobe Steel’s Aluminum & Copper Company posted consolidated net sales of 232.8 billion yen and operating profit of 14 billion yen in the first half of fiscal 2007 ended September, announced the firm on Tuesday. The sales increased by 21% compared with 1H of F2006 while the profit decreased by 22.2% due to lower inventory valuation for aluminium and copper rolled products. The firm estimates consolidated net sales of 455 billion yen and operating profit of 22 billion yen for the company through F2007.The sales volume of aluminium rolled products increased by 7.8% to 176,600 tonnes in 1H of F2007 compared with the corresponding period of F2006, increasing by 8.8% to 158,800 tonnes for plates while decreasing by 0.6% to 17,800 tonnes for extrusions. The sales were favorable for beverage can materials, automotive parts and fin materials of air conditioners though the demand was adjusted for productive equipment of liquid crystal panels.The sales volume of copper alloy fabricated products decreased by 1.5% to 73,800 tonnes in 1H of F2007 compared with 1H of F2006. The sales of copper strips increased by 1.2% to 32,700 tonnes thanks to the active demand for electronic materials. The sales of copper tubes decreased by 3.5% to 41,100 tonnes when the domestic demand was stagnant for air conditioners.Kobe Steel estimates its sales volume of aluminium rolled products would total 340,000 tonnes and copper alloy fabricated products 147,900 tonnes through F2007. Aluminium plate is expected to total 303,100 tonnes and aluminium extrusion 36,900 tonnes. Copper sheet and strip would total 68,300 tonnes while copper tube 79,600 tonnes.