Kobe Steel’s Aluminum & Copper Unit to Clear F08 Targets Earlier

Aluminum & Copper Company of Kobe Steel estimates the sales volume would favorably increase for both aluminium rolled products and copper fabricated products, including copper plate, strip and tube, through fiscal 2006 ending March 2007 from fiscal 2005. The company seems to post 370 billion yen of consolidated net sales, 26 billion yen of operating profit and 7% of operating margin through fiscal 2006 thanks to the favorable sales condition, while the company would achieve the mid-term earnings targets originally set for fiscal 2008 along its 3-year management plan. Hiroyuki Nakayama, senior managing director of Kobe Steel, explained the company’s profit outlook is more than the actual profitability when the inventory value increased under surging ingot market price. The company seeks continuous growth by management reinforcement including price hike to pass increasing material costs.Aluminum & Copper Company’s sales volume of aluminium rolled products is likely to reach 282,000 tonnes through fiscal 2006, increasing by 1,000 tonnes from fiscal 2005. The sales volume could keep the level almost as flat as fiscal 2005 thanks to the brisk demand for auto related products, while the demand is inactive for can materials.The sales volume would increase by 5,000 tonnes to 68,000 tonnes for copper plate and strip and by 6,000 tonnes to 83,000 tonnes for copper tube in fiscal 2006 from the previous fiscal year. Production is full for copper plate and strip with active demand for auto and electronics related products. The production would not be impacted seriously by the temporary operation stop at Chofu plant due to power transmission accident of Chugoku Electric Power. Copper tube demand is brisk for export.The company originally aimed 365 billion yen of consolidated net sales, 23 billion yen of operating profit and 6.3% of operating margin at the end of fiscal 2008. The company seems to achieve these targets in fiscal 2006, while continues to seek sales expansion in auto and information technology related fields.