Kobe Steel’s Al & Cu Unit Recovers Annual Operating Profit in F2009

Kobe Steel announced on Wednesday the aluminium and copper business unit posted 261.7 billion yen of consolidated annual net sales and 7.5 billion yen of operating profit in fiscal 2009 ended March 2010. The sales decreased by 31% from 379.3 billion yen of fiscal 2008 due to market price down of metal ingot. Meanwhile, the profit improved by 34.3 billion yen from 26.8 billion yen loss of fiscal 2008 thanks to the firm’s cost cutting efforts. In fiscal 2010, Kobe Steel’s shipment volume of aluminium and copper rolled products is expected to increase from fiscal 2009.

The business unit posted 134.9 billion yen of consolidated net sales for aluminium rolled products in fiscal 2009, down by 20.1% from fiscal 2008, and 101.6 billion yen for copper rolled products, down by 26.3%. The sales declined by 31% to 22.5 billion yen for forged products and by 93.2% to 2.7 billion yen for other products.

The sales volume decreased by 7.4% to 246,800 tonnes for aluminium flat products and by 15% to 24,400 tonnes for aluminium extruded products in fiscal 2009 from fiscal 2008. The sales volume of can materials turned downe in October-December while the demand for aluminium automotive components recovered in July-September mainly from environment-friendly cars requiring light weight materials. The demand also improved in October-December from the makers of semiconductor and liquid crystal panel manufacturing equipment.

The sales volume increased by 3.1% to 49,900 tonnes for copper sheet and strip while decreased by 14.1% to 62,300 tonnes for copper tubes in fiscal 2009 from fiscal 2008. The shipment of sheet and strip was activated in July-September thanks to the progress of inventory adjustment. Copper tube demand maintained weak from air conditioners.