Japan Light Metal Rerollers Post Higher Sales in 1H

Japanese major 5 light metal rerollers posted higher consolidated sales for the half year to September from same period of 2005, according to their financial results announced by Friday. The 4 makers except for Showa Denko posted higher operating profit under firm demand for automobile and transport industry. They should improve the selling price to keep the profitability when the cost increases for material ingot and crude oil. Nippon Light Metal reported favorable results for the first half except for the construction materials. The firm increased the operating profit for flat and extrusion products from same period of 2005 while the sales was firm for alumina and ingot products. Sumitomo Light Metal Industries increased the sales of extrusion and rolled copper products in the first half from same period of 2005 while the aluminium flat products sales decreased slightly. The rolled aluminium sales increased by 0.4% to 190,447 tonnes. Kobe Steel’s aluminium and copper unit increased the rolled copper products and reduced the light metal products sales in the first half from same period of 2005 due to slower sales for can materials. The unit’s sales and profit increased due to higher metals prices and gain from inventory valuation. Showa Denko reduced the profit for the first half year to June from same period of 2005 when the firm was suffered from higher material metal price. The sales volume decreased by 0.5% to 43,088 tonnes. Furukawa-Sky Aluminum increased the sales volume by 2.8% to 222,000 tonnes in the first half to September from same period of 2005. However, with higher cost for raw materials, the profit gain was limited.