Japan Major 6 Light Metal Rerollers Post Strong Results

Japanese major 6 light metal rolling makers posted higher consolidated sales for fiscal 2006, which is the year to December 2006 for Showa Denko and the year to March 2007 for other 5 firms, from fiscal 2005. The majors posted higher operating profit except for Showa Denko under firm demand for automobile. They expect the firm demand and higher cost for aluminium ingot for fiscal 2007 despite of. Nippon Light Metal posted higher sales and profit for fiscal 2006 from fiscal 2005 due to higher profit from alumina, chemical products and ingot along with sheet and extrusion. The firm cleared the 23 billion yen of recurring profit, which was the target for fiscal 2009. The firm expects lower sales and profit for fiscal 2007. Kobe Steel’s copper and aluminium unit enjoyed firm demand for aluminium plate for semiconductor making facilities and aluminium substrate for magnetic disc in fiscal 2006 while the can materials demand was lower for unfavorable weather. The rolled light metal sales decreased by 1.5% to 328,600 tonnes in fiscal 2006 from fiscal 2005. The unit expects lower profit for fiscal 2007 due to higher inventory value. Sumitomo Light Metal Industries increased the sales volume of aluminium flat and extrusion products in fiscal 2006 from fiscal 2005 due to higher demand for transport and electronics and communication. The offshore aluminium smelting subsidiary also contributed to the higher profit. The firm tries to renew the record profit for fiscal 2007, which represents record for 6 years in a row.