Sumitomo Metal Mining Raises Profit Target for Fiscal 2009

Sumitomo Metal Mining announced on Friday the firm revised the consolidated recurring profit outlook upward to 75 billion yen for fiscal 2009 ending March 2010 compared with 54 billion yen as of September 2009. The firm expects the net profit is 46 billion yen and the sales are 707 billion yen compared with former 36 billion yen and 665 billion yen respectively when copper and nickel price increase. The firm increases year-end dividend by 3 yen to 10 yen per share.

The consolidated operating profit increased by 41% to 41.3 billion yen for April-December 2009 from same period of 2008 when gold price increased. The profit of mineral resources and non-ferrous metal segment increased due to the gold, copper, nickel price increase. The electronics & advanced material segment returned to profitability from operating loss in same period of 2008 when the order receipt increased and inventory adjustment progressed.

However, the sales decreased by 21% to 518.8 billion yen in April-December 2009 from same period of 2008 when averaged non-ferrous metal price decreased. The recurring profit decreased by 8% to 53.6 billion yen when the investment return decreased. The net profit decreased by 13% to 33.8 billion yen.