Showa Denko Posts First Annual Net Loss Since CY2001

Showa Denko announced its full-year financial result on Wednesday. The firm posted the consolidated annual net loss for the first time since 2001, which was 37.981 billion yen in 2009. Showa Denko’s product sales totally declined in the first half year due to global economy deterioration after Lehman Shock. The aluminium business unit posted the large loss as a result of the business optimization. Showa Denko targets the consolidated annual net profit at 11 billion yen in 2010 to reflect the demand recovery and the cost cut measures.

The electronics business unit posted the consolidated operating loss at 9.775 billion yen in 2009 though the unit gained the operating profit at approximately 9.3 billion yen in 2008. Hard disc production significantly decreased during January-June 2009. The production has rapidly recovered in the second half year. The electronics business unit is forecasted to post the operating profit at 14.5 billion yen for 2010.

The aluminium business unit posted the consolidated operating loss at 4.217 billion yen in 2009. The loss expanded from 2008 due to the sales decline of high purity aluminium foils for capacitors and aluminium heat exchangers for automobiles during January-June 2009. Showa Denko expects the demand recovery and the operating profit at 4.5 billion yen for the business unit in 2010.