Japan Major 5 Nonferrous Metal Smelters Post Net Loss for April-December

Japanese major 5 nonferrous metals smelters posted net loss for April-December, according to results of major 8 smelters announced by Monday. Their profitability got worse due to plunged metal prices and higher yen rate along with slower demand. Six smelters expect full year net loss for the year ending March 2009 when their operations get severer in January-March.

Nippon Mining Holdings expects net loss for the year ending March 2009, which is the first loss in 10 years. The firm expects recurring loss due to inventory loss for the oil unit while the metal unit will post 21.5 billion yen of recurring profit. The metal unit also reduces the profit due to lower copper price and copper production along with higher yen rate.

Mitsubishi Materials announced on Monday the net profit will be only 1 billion yen for the year ending March 2009, which is 96% lower than outlook in November. The firm didn’t distribute yearend dividend while the firm expected 4 yen per share of dividend. The firm revised the recurring profit to 40 billion yen, which is a half of previous outlook.

Sumitomo Metal Mining secured profit due to firm operation for metal and metal fabrication businesses. The firm, however, revised the full year outlook downward to 26 billion yen of recurring profit, which is 75% lower than previous outlook in October.

Mitsui Mining & Smelting, Dowa Holdings and Toho Zinc posted net loss for April-December due to inventory loss, loss from mines with interests and valuation loss from securities. International zinc market price decreased since autumn even after the price already decreased to less than breakeven point as of July 2008.