Furukawa-Sky Aluminum 79% higher Operating Profit for F2009

Furukawa-Sky Aluminum Corp. announced on Tuesday the firm targets 24.5 billion yen of consolidated operating profit with 245.8 billion yen of sales for fiscal 2009 ending March 2010 under the new 4-year plan starting April 2006 compared with estimated 13.7 billion yen of operating profit for fiscal 2005. The parent company tries to secure more than 10% of operating profit for sales. The firm also reduces the consolidated debt equity ratio to less than 100% for fiscal 2009. The firm also expands melting and casting capacity at Fukui plant by June 2006 for around 4 billion yen. The firm tries to establish strong profitability under the new plan. The firm restructures the flat products production system and expands the capacity through capital expenditure. The firm tries to improve the cost structure while the firm increases the profit for the group including offshore operations. The firm targets 478,000 tonnes of annual sales in fiscal 2009 compared with estimated 429,000 tonnes in fiscal 2005. The parent company targets 21.6 billion yen of operating profit with 212.2 billion yen of sales for fiscal 2009. The firm reduces the interest bearing debt by around 20 billion yen to 65 billion yen in fiscal 2009 from estimated number in fiscal 2005. The parent company plans 18.5 billion yen of capital expenditure in fiscal 2006 and keeps 10-12 billion yen of expenditure in fiscal 2007-2009. The firm adds a melting furnace with 80 tonnes of capacity, a holding furnace with 120 tonnes and a caster at Fukui plant. The firm purchases castings from offshore sources to cover the shortage of casting capacity. With the new facilities, the firm can fill the gap with the rolling capacity. The investment reduces inventory of raw materials, castings and rolled products. The firm also expects the firm can improve the scheduled maintenance of melting and casting facilities.