Nippon Light Metal to Target 60% Higher Profit for F2009

Nippon Light Metal targets 35 billion yen of consolidated recurring profit in 3 years, which is 60% higher than that in fiscal 2006 ending March 2007, under the next 3-year plan starting April 2007. The firm will double the dividend to 10 yen per share for the last year. The firm tries to expand the business mainly for automobile and offshore operations. The firm will post 22 billion yen of recurring profit for fiscal 2006, which is lower than 23 billion yen of original target. The president Shigesato Sato said the results for fiscal 2006 could be better and in line with the target. The firm tries to improve the profitability more for the next plan. The firm targeted 23 billion yen of consolidated recurring profit with 590 billion yen of sales for final year under the 5-year plan from fiscal 2002. The firm has tried to reduce the interest bearing debt from 300 billion yen to 230 billion yen and to increase return on capital employed to more than 8% in the 5 years. The firm cleared some of the targets ahead of the schedule through the actions under the plan. The firm tries to expand the sales for growth areas of automobile, appliances and electronics under the next 3 years plan. The firm expects the main business of construction materials will improve the profitability when the firm is passing the higher cost of aluminium ingot and reducing the cost. The firm also seeks more sales in China and Asian countries.