Japan 4 Major Aluminium Re-Rollers Post Full-Year Net Profit in F2010

Japanese 4 major aluminium re-rollers, Nippon Light Metal, Sumitomo Light Metal Industries, Furukawa-Sky Aluminum and Mitsubishi Aluminum, gained full-year net profit in fiscal 2010 ended in March 2011. Sales volume recovered along governmental incentive programs mainly for automobiles. Optimization of unprofitable businesses also contributed to the profit improvement.

Sumitomo Light Metals, Furukawa-Sky Aluminum and Mitsubishi Aluminum posted first full-year net profit since fiscal 2007. Nippon Light Metal gained full-year net profit for 2 business years in a row while the profit expanded by more than 5 times in fiscal 2010.

Sumitomo Light Metals’ sales volume increased by 12% to 28,000 tonnes per month for aluminium plate in fiscal 2010 from fiscal 2009. The sales volume of extrusions increased by around 4%. Shutdown of Chiba plant also contributed to the profit increase, which was the productive site for aluminium extrusion.

Furukawa-Sky’s sales volume of flat products increased by more than 10% year-on-year, especially for aluminium plates adopted to semiconductor and liquid crystal panel manufacturing equipments. Mitsubishi Aluminum enjoyed steady demand for automotive extrusions and back sheets for solar cells.

Nippon Light Metal’s full-year recurring profit jumped by 6.9 times. Aluminium foil sales for electrolytic capacitor maintained high level while extrusion sales largely increased for passenger cars and trucks. Kobe Steel’s aluminium & copper business unit enjoyed favorable sales of rolled aluminium and copper alloy products for cars, air conditioners and liquid crystal panel manufacturing equipments.

For fiscal 2011, Nippon Light Metal, Furukawa-Sky and Showa Denko forecasts year-to-year lower financial results when trends of the users’ market, crude oil price and yen exchange rate are unforeseeable.