Sumitomo Corp., Marubeni Corp. Post Higher Profit for Metal Unit

Metal unit of Sumitomo Corporation and Marubeni Corporation posted higher sales and profit for the half year to September. They enjoy the boom for metal resources, automobile and energy sectors. They could keep the higher profit in second half year under firm demand for steel. Sumitomo Corp.’s metal unit posted 3.554 billion yen higher net profit at 13.717 billion yen with 143.985 billion yen higher sales at 829.857 billion yen in the first half year from same period of 2005. The favorable results came mainly from firm trading of steel pipe, plate and nonferrous metals. Sumitomo Corp. agreed with Showa Denko to merge alloyed aluminium business. They expand the output capacity for alloyed aluminium to meet firm demand for automotive parts and building materials while they improve profitability through optimization of the production. Sumitomo Corp. got order of heat transfer pipe for steam generator with cooperation with Sumitomo Metal Industries from nuclear power plant in Taishan, China. It was the first order for Sumitomo Corp. to supply materials for growing nuclear power plant in China. Sumitomo Corp. combined 2 stainless steel products distributors in North America to keep the leading position in the distribution along with the higher profitability through integration of operations, lower inventory level and cost cutting effort. Marubeni Corp.’s metal unit posted 1.448 billion yen higher net profit at 20.1 billion yen with 147.943 billion yen of higher sales at 490.851 billion yen for the first half year from same period of 2005. The metal resources division posted 4.154 billion yen higher net profit at 12.032 billion yen with 148.079 billion yen higher sales at 490.485 billion yen while the steel products division posted 2.706 billion yen lower net profit at 8.068 billion yen with 136 million yen lower sales at 366 million yen.