Japan Smelters Post Low Profit for Electronic Materials in 1Q

Japanese 4 nonferrous metal smelters posted lower profits for their electronic material businesses in April-June 2007 (1Q of fiscal 2007) compared with the corresponding period of 2006, while the other 2 smelters gained higher profits. Sales and profits decreased especially for flat panel display (FPD) related materials due to the continuous inventory adjustment in the end-product market since autumn 2006. Sales and profits were relatively favorable for semiconductor related materials.The demand recovery was slow for indium-tin-oxide (ITO) target materials applied to transparent electrode of liquid crystal panels. The profitability of ITO target materials also became worse impacted by the inventory adjustment. Under the influence, Mitsui Mining & Smelting posted 49.8% lower operating profit for its Intermediate Material Division and Nippon Mining Holdings posted 3.8% lower operating profit for its Electronic Materials Division in 1Q from a year earlier.Sales and profits decreased for plasma display panel related materials as well. DOWA Holdings posted less operating profit due to the lower sales volume of silver powder and other related materials. Sumitomo Metal Mining’s operating profit decreased by 35.4% for its Electronics & Advanced Materials Division in 1Q from a year earlier.The demand was favorable for semiconductor related materials contrary to FPD materials. Mitsubishi Materials enjoyed 37% higher operating profit for its Electronic Materials & Components Division in 1Q from a year ago thanks to the active demand for silicon products, especially for monocrystalline silicon applied to 300 millimeters wafers.Nippon Mining Holdings enjoyed active demand for semiconductor related sputtering targets despite of the less operating profit as total. DOWA Holdings increased the sales of gallium arsenide wafers, light emitting diodes and high-purity gallium. Furukawa posted 15.3% higher operating profit in 1Q from a year earlier thanks to the steady sales of high-purity metallic arsenic.