Japan Aluminium Sash Makers Post Worse Sales and Profits in 1H

Japanese 4 major aluminium sash makers posted unfavorable sales and profits in first half of fiscal 2006 ending March 2007. Net sales decreased from a year ago at Tostem Corporation, YKK AP and Shin Nikkei Company, while profits declined at YKK AP, Shin Nikkei and Fuji Sash. Demand was brisk for housing materials but slow for building materials in 1H. Sales condition was not strong as total. The makers were also suffered from surge of primary aluminium price and resulted in worse profitability.Tostem posted 218.9 billion yen of sales for housing materials in 1H, which is the main business of the firm and decreased by 1.2% from 1H of fiscal 2005. On the other hand, the firm could improve operating profit for housing materials, which increased by 44.7% to 14.8 billion yen in 1H from a year ago thanks to price hike and cost cut efforts.YKK AP posted less sales and profits in 1H from the same period of fiscal 2005. Order reception decreased for building materials. Operating profit declined to below 3 billion yen due to loss expansion in building materials unit.Shin Nikkei continued to post losses. Operating profit decreased by 55% to 284 million yen for housing materials in 1H from a year earlier, while the firm posted 966 million yen of operating loss for building materials. Total operating loss expanded as a result.Fuji Sash posted net loss in 1H when the firm held orders for building construction with lower profitability. The firm posted net loss in 1H of fiscal 2005 as well.