Nippon Mining Holdings Targets 160B yen of Profit in F2008

Nippon Mining Holdings announced on Monday the firm targets 160 billion yen of consolidated recurring profit without valuation profit of inventory for fiscal 2008 ending March 2009 under the new mid-term plan. The firm tries to post around 3.1 trillion yen of sales per year in the 3 years by expanding sales of electric materials and metal processing products though the firm expects foreign exchange rate of yen increases against US dollar and metal prices decrease after fiscal 2006. The firm expends around 350 billion yen for offshore copper development and expansion of petrochemicals in the e years. The firm seeks growth strategy while the firm increases the equity capital ratio from estimated 25.2% for end of fiscal 2005 to 33.5% for end of fiscal 2008 and reduces the debt equity ratio to 105%. The firm plans to post annual 130-160 billion yen of recurring profit in the 3 years. The profit increases materially though the nominal profit is lower than estimated 184 billion yen for fiscal 2005, which includes 58 billion yen of valuation profit of inventory for oil and other products. The firm targets 90 billion yen of net profit for fiscal 2008 in line with estimated profit for fiscal 2005 after the firm finished to post major extraordinary losses by fiscal 2005. The firm uses 140 billion yen for growth investment including new projects under the around 350 billion yen of capital expenditure program in the 3 years. The firm develops offshore copper resources including development of Regalito copper mine of Chile while the firm expands the output capacity, increases the high-valued products and launches new products for the electric materials units. The firm also expands the environmental and recycling business and alloy products business while the firm improves the offshore operations of precision processing and rolling business. The firm also expands aroma business for the petroleum business.The firm expends 105 billion yen to improve competitiveness for existing business in the 3 years. The firm improves the copper smelting, integrates copper smelters and improves competitiveness of oil refinery and service stations. The firm expends total 245 billion yen including growth investment, which represents 70% of total expenditure. The firm also expends 105 billion yen for environmental actions and maintenance.