SUMCO Expects Lower Profit for F2008

SUMCO Corporation announced its consolidated net profit is estimated to decrease by 22.5% to 58 billion yen for fiscal 2008 ending January 2009 compared with the previous fiscal year. Consolidated revenue is estimated to increase by 5.3% to 500 billion yen for F2008 thanks to the sale growth of 300-millimeter silicon wafers mainly for memory chips. However, depreciation is expected to increase largely in F2008 due to capital expenditure. Price down of silicon wafers and higher yen against US dollar would also impact profitability.SUMCO posted consolidated revenue at 475 billion yen and recurring profit at 133 billion yen in F2007. The revenue increased by 48.7% and the profit by 75.4% year-on-year. Demand for 300mm wafer was strong thanks to semiconductor shipment growth mainly for memories. SUMCO TECHXIV, a new subsidiary of SUMCO, also contributed to higher sales and profits.Net profit increased by 3.9% to 74.9 billion yen for F2007 when SUMCO posted extraordinary expense to close French productive site. The firm posted deferred tax asset in F2006 which was emerged along closure of US subsidiary. Except this effect, the net profit for F2007 increased by 77% year-on-year.