Japanese Nonferrous Metal Smelters Forecast Losses for F2009

Mitsubishi Materials announced on Thursday the firm revised down consolidated annual profit forecast for fiscal 2009 ending in March 2010. The firm reviewed full-year consolidated recurring loss from previously estimated 21 billion yen to 27 billion yen and full-year consolidated net loss from 50 billion yen to 60 billion yen. The profitability worsens when the demand related to manufacturing industry’s investment maintains very low in both domestic and overseas markets. Underlying trend of stronger yen also impacts the profits.

Mitsubishi Materials posted 490.2 billion yen net sales for a half fiscal year ended in September 2009, down by 37.5% from the same period of fiscal 2008. Operating loss was 6.1 billion yen, recurring loss was 27.2 billion yen and net loss was 32.5 billion yen.

Metals business unit, Advanced Materials & Tools business unit and Electronic Materials & Components business unit posted operating losses for April-September 2009. Metals business unit posted 2.1 billion yen operating loss due to an operation trouble in a domestic copper smelter and the sales decline of copper fabricated products. In Advanced Materials & Tools business unit, operating loss was 5.3 billion yen with sluggish demand for cemented carbide tools and other high function products.

Furukawa Co. also announced on Thursday the firm revised down consolidated annual profit forecast for fiscal 2009. The firm now estimates consolidated recurring loss at 500 million yen for a full fiscal year ending in March 2010, though the previous forecast announced on August 5th was recurring profit at 500 million yen. Machinery business unit’s profitability worsens due to low demand both at domestic and overseas markets. Annual operating profit forecast was reviewed down to 1 billion yen from previous 2.3 billion yen. Annual net sales were reviewed up to 133.5 billion yen from previous 127 billion yen to reflect high copper price.

Furukawa’s half-year financial results included consolidated recurring loss at 1.134 billion yen for April-September 2009. Machinery business unit posted operating loss at 2.2 billion yen. Metal business unit’s operating profit decreased by 32.5% to 1.3 billion yen from a year earlier.