|  | 14/07/2004 |
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Mitsubishi Materials Targets 43 billion yen of Profit
Mitsubishi Materials targets record 43 billion yen of recurring profit for the year ending March 2005 under new president Akihiko Ide, former leader of restructuring. The firm improves operating profit for metal unit due to better condition for ore purchase while it continues choice and focus strategy. The firm will shift aggressive growth strategy from defensive position under new mid-term business plan starting April 2005.
The firm reduced consolidated subsidiaries and affiliates to 238 and 77 in fiscal 2003 ended March 2004 from 247 and 89 in fiscal 2002 by withdrawing from money losing businesses under the choice and focus strategy.
The firm also reduced interest-bearing debt by around 25% to around 790 billion yen in fiscal 2003 from peak of 1.03 trillion yen. The firm reduces the balance by 5% to 750 billion yen.
The firm already split administration into management staffs and group operations to provide shared service for the business units along with efficiency and cost cutting. The firm gets full effect of the restructure in fiscal 2004.
Copper smelting unit enjoys better ore purchase condition in the year, especially second half, improving operating profit up to 10 billion yen.
Metal unit improves profit significantly in the year after restructuring under worse market condition. Major smelter Naoshima in Kagawa starts recycling business in the year after finish construction of facilities to collect valuable metals from shredder dust. The new business also improves the profitability.
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 | Mitsubishi Materials Targets 43 billion yen of Profit
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