Low Demand, High Cost Suffer Japan Shutter Makers Profits in 1H

Japanese major 4 shutter makers posted lower profits for the first half of fiscal 2008 (Apr-Sep) compared with the corresponding period of fiscal 2007, two of which posted net loss. Business conditions were severe when metal and substantial material costs, especially for steel, stayed high and the demand maintained stagnant due to less new housing starts in Japan. Their accounts are expected to keep sluggish along slower economy.

Sanwa Holdings’ 1H revenue and profit were lower compared with the same period of F2007. The firm posted net loss with goodwill amortization at 3 billion yen. Showa Front, a domestic subsidiary to manufacture aluminium building materials for stores, and Overhead Door Corporation, another subsidiary in USA, were suffered from lower profits despite of their efforts of price hike and cost cut.

Bunka Shutter posted lower operating profit, recurring profit and net profit in 1H from same period of 2007. The market shrink impacted on the firm’s operation. The building material business unit posted operating loss with less demand for doors and partitions of buildings, plants and warehouses.

Toyo Shutter’s half-year revenue and profit were lower than a year earlier. TOSTEM Suzuki Shutter MFG gained higher net sales and operating profit for 1H with active order receipts for large stores and warehouses. However, the net profit widely downed by selling an idle asset.