Japan Major 5 Light Metal Rerollers Post Lower Profit in 1H

Japanese major 5 light metal rerollers posted lower profit for the half year to September from same period of 2007 due to higher cost for raw materials and energy along with higher depreciation under new tax rule. The makers’ profitability could get worse when domestic economy slow.

Nippon Light Metal reported lower results for all segments for the first half from same period of 2007. The construction materials unit reported higher loss while the flat and extrusion unit posted 40% lower operating profit. The firm revised the full year outlook downward.

Kobe Steel’s aluminium and copper unit reported can materials demand was firm and materials for liquid crystal panel making equipment recovered in the first half from same period of 2007. However, the sales volume decreased due to lower sales for air conditioner fin and printing plate. The unit expects to post operating loss for the second half.

Sumitomo Light Metal Industries posted lower recurring profit in the first half from same period of 2007 due to higher input cost and depreciation. The firm tries to improve the profitability through price hike and cost reduction.

Furukawa-Sky Aluminum also reported lower profit in the first half from same period of 2007 due to higher input cost. Showa Denko’s aluminium unit posted more than 80% lower profit.