Mitsui Mining & Smelting Posts 74% Lower Net Profit in 1H

Mitsui Mining & Smelting announced on Tuesday the firm posted consolidated net profit at 4.2 billion yen for the first half of fiscal 2008 (Apr-Sep), decreasing by 74% from the corresponding period of fiscal 2007. The consolidated revenue downed by 10% due to price down of electrolytic zinc, severe price competition of liquid crystal panel parts and demand decline for automotive components. The consolidated recurring profit also decreased by 42% with investment loss on equity method and inventory valuation loss.

The business unit of mining & fundamental materials posted 96% lower operating profit in 1H when zinc market price dropped down, Japanese yen became strong against US dollar and energy costs surged such for cokes. The business unit of intermediate materials gained 29% higher operating profit thanks to the change of inventory valuation method, though the revenue decreased for semiconductor packaging materials and battery materials.