DOWA Targets 45B Yen Recurring Profit along New 3-Year Strategy

DOWA Holdings announced on Wednesday new 3-year management plan starting in April 2012. The firm plans 60 billion yen of accumulative capex through the end of fiscal 2014 at March 2015 mainly for growing business fields such as new energy or recycle. The 3-year capex will increase from estimated 53.6 billion yen for fiscal 2009-2011. By the strategic investment, DOWA Holdings tries to expand businesses in Asia and emerging countries as well as establishes flexible production and sales systems along with volatile market conditions. In the final year of fiscal 2014, the firm aims consolidated recurring profit at 45 billion yen, increasing from estimated 22 billion yen in fiscal 2011.

In Environmental Management & Recycling business field, DOWA Holdings plans to improve profitability of existing businesses while the firm plans to accelerate operations in Asian market. The firm also projects new business development other than waste treatment, soil remediation and metal recycle. Consolidated recurring profit in this business field is targeted at 12 billion yen in fiscal 2014.

Nonferrous Metals business unit aims recurring profit at 9 billion yen. The group plans to strengthen complex systems mainly at Akita Zinc and Kosaka Smelting & Refining and increase margins generated by by-products. The group also expands rare metal businesses.

As for Electronic Materials, DOWA Holdings tries to expand sales of strategic products and to accelerate commercialization of new products. The firm also progresses R&D for future sustainability and seeks new business themes. Recurring profit target is 13 billion yen. Metal Processing business unit targets recurring profit at 7 billion yen by speedup of Asian operations, focusing on growing business fields such as environment and energy, as well as raising competitiveness of domestic plants.

In Heat Treatment business fields, DOWA Holdings aims the position as a global and total heat treatment business player and targets recurring profit at 4 billion yen.