Nippon Light Metal to Post First Annual Operating Loss in 10 Years

Nippon Light Metal announced on 6 February the firm posted consolidated recurring loss of 3.3 billion yen and net loss of 7.6 billion yen for April-December 2008. The firm gained consolidated operating profit of 1.2 billion yen for 9 months but the profit dropped by above 90% from the corresponding period of 2007. Nippon Light Metal estimates the firm would post operating loss of 1.5 billion yen and recurring loss of 6.5 billion yen through fiscal 2008 ending March 2009. The firm would post the first operating loss since fiscal 1998 and the first recurring loss since fiscal 1999.

Demand for aluminium rolled products is significantly weakening, especially from constructions and automobiles. In addition, Nippon Light Metal posted extraordinary loss of 1.1 billion yen for the 9-month result to December 2008 as renovation cost for

specification-violating fireproof products sold by the subsidiary, Shin Nikkei Company.

Nippon Light Metal posted operating loss for the aluminium sheet & extrusions business unit and the building materials business unit for April-December 2008. The sales of aluminium plates and foils significantly decreased, especially for semiconductor and liquid crystal panel manufacturing equipment. The aluminium extrusion sales decreased for trucks and electric appliances. Construction related demand maintained weak from both residences and buildings.

The firm gained operating profits for the other business units including aluminium ingot, alumina, chemicals and fabricated products. The sales were stable for medical packages, solar cell back sheets and brazing honeycomb panels.