Many Japan Rolled Copper Makers Post Lower Profit in 1H F2011

Japanese major rolled copper makers posted lower operating profit except for Sumitomo Light Metal Industries for first half of fiscal 2011 started April from same period of fiscal 2010, according to financial results of major 6 makers. The all makers posted higher sales due to higher copper price.

Sumitomo Light Metal Industries’ rolled copper unit gained from strong demand for energy saving air conditioner after the major earthquake. The unit posted 958 million yen of operating profit for the first half, which was 14 times of the profit in same period of fiscal 2010.

Furukawa Electric’s metals unit posted 48% lower operating profit for the first half from same period of fiscal 2010 due to slow demand for copper strip while the copper tube and electrolytic copper foil demand was firm. Dowa Holdings posed 16% lower operating profit due to slow demand for copper strip.

Major brass bar makers gained from higher inventory building demand in the first half. However, they posted inventory valuation loss due to copper price drop. Their operating profit decreased by 17% for CK San-Etsu, by 33% for KITZ Corporation and by 24% for Nippon Shindo from same period of fiscal 2010.

The rolled copper makers’ results could be impacted by Thai flood for the second half. Thai flood related impact decreases the rolled copper demand. Furukawa Electric already posted 400 million yen of negative impacts due to damage at the precision process plant in Thailand.