Japan Sash Makers Suffered from Worse Profits in F2007

Japanese 4 major aluminium sash makers posted lower sales and profits for fiscal 2007 ended March 2008 than the previous year. Domestic demand for building and housing materials turned stagnant due to the confusion after Japanese new building standard law started. Higher material costs also impacted their profitability. In fiscal 2009, the 4 sash makers expect the profit recovery when the confusion by the law revision would settle down.Tostem Corporation posted 75% lower net profit in F2007 than F2006. The sales of housing sashes rather decreased while the building material unit posted operating loss. The firm expects the slight demand recovery for the housing materials though the building material business would maintain worse in F2008.YKK AP was suffered from remarkable decline of the operating profit for the domestic housing material business unit. On the other hand, the building material business gained year-on-year higher profit in F2007 than F2006. The firm estimates higher sales and profits in F2008 thanks to the demand recovery.Shin Nikkei Company sustained slight operating profit for the building material business unit while posted operating loss for the housing material unit. The operating loss in the housing material unit totaled 2.6 billion yen, impacted directly by the revision of Japanese building standard law.Fuji Sash’s recurring profit almost halved year-on-year in F2007 when the shape selling business turned into the red. The building material business could maintain the operating profit as much as F2007 thanks to the selection of profitable orders. The firm aims to regain the profits for the housing materials and the shape selling units in F2008.