Mitsui Mining & Smelting Posts Record Profit in F2006

Mitsui Mining & Smelting announced on Thursday the firm posted consolidated recurring profit of 56.585 billion yen in fiscal 2006 ended March 2007, which upped by 2.1% from fiscal 2005 and hit record for 3 years in a row. The consolidated net sales also hit record 591.518 billion yen and the consolidated net profit increased by 34.2% to 31.37 billion yen. The firm gained equity method income from joint smelters including Pan Pacific Copper and MS Zinc in fiscal 2006, though the consolidated operating profit declined from previous year due to worse profitability for electronic materials.Mitsui Mining & Smelting posted net sales of 113.5 billion yen for the Mining & Fundamental Materials Unit in fiscal 2006, up by 21.1% over previous year. The operating profit for the unit expanded to 10.9 billion yen or 2.4 times of fiscal 2005 thanks to zinc demand increasing for galvanized steel sheet and upsurge of nonferrous metal prices.The net sales increased by 19.6% to 249.2 billion yen while the operating profit decreased by 39.8% to 18.3 billion yen for the Intermediate Materials Unit in fiscal 2006 from fiscal 2005. The profitability improved for electrolytic copper foil but became worse for crystal liquid display related materials including indium-tin-oxide (ITO) targets.The net sales increased slightly to 161.7 billion yen while the operating profit decreased by 45% for the Parts Manufacturing & Assembly Unit in fiscal 2006 over previous year due to lower selling prices, higher steel costs and expenditure expansion for product quality improvement. For the Environmental Engineering & Metals Recycling Unit, the firm could post rather favorable sales and profits.Mitsui Mining & Smelting estimates the consolidated net sales would increase by 4.5% to 618 billion yen in fiscal 2007 from fiscal 2006 while the recurring profit decline by 20.5% to 45 billion yen and the net profit down by 17.1% to 26 billion yen.