Kobe Steel’s Al, Cu Unit to Post Higher Profit for 1H F2010

Kobe Steel’s aluminium and copper unit expects the consolidated recurring profit will be more than 7 billion yen for April-September. The unit now expects higher profit in July-September while the unit expected 800 million yen of profit in July-September compared with 6.2 billion yen profit in April-June. Strong demand for air conditioner and for can material under very hot summer lifted the operation rate and profitability.

The unit expected around 3 billion yen of recurring profit for the first half year of fiscal 2010 started April as of the beginning of the fiscal year. However, the profit was 6.2 billion yen in April-June under higher demand than expected. The unit expects monthly sales volume will be 22,000 tonnes for aluminium flat products, 2,700 tonnes for extrusions and 5,300 tonnes for copper flat and strip products in the first half compared with same period of 2009 at 24,000 tonnes, 2,200 tonnes and 3,500 tonnes respectively. Especially, the operation rate reaches 100% for copper flat and strip. Wit the strong demand, the recurring profit will be more than 800 million yen in July-September.

However, the unit expects severe demand condition in and after October. The unit expects the profit will be the level for second half year as expectation at the beginning of the year when automotive demand will decrease by around 20% and copper flat and strip demand turns into adjustment.

The unit expects the monthly sales will be 21,000 tonnes for aluminium flat products, 2,800 tonnes for extrusions and 5,100-5,200 tonnes for copper flat and strip products, which is 1,000 tonnes and 100 tonnes higher for aluminium flat and extrusion products and 100 tonnes lower or same level for copper flat and strips compared with same period of fiscal 2009.