Japan Major 6 Light Metal Rerollers Post Better Results in F2009

Japanese major 6 light metal rerollers posted better results for fiscal 2009 2010 from fiscal 2008. The profitability of the makers, which Showa Denko’s fiscal year ended December 2009 and other 5 companies’ term ended March 2010, improved in the second half due to cost cutting and recovering demand while the sales decreased widely with very low sales volume in the first half. They expect higher sales and profit for fiscal 2010.

All 5 makers with March end period posted operating profit in fiscal 2009 while 4 makers posted loss in fiscal 2008. Showa Denko posted operating loss in fiscal 2009 due to 4.5 billion yen of loss in January-March 2009.

Nippon Light Metal reported 19.6 billion yen improvement in recurring profit in fiscal 2009 from fiscal 2008 despite of 93.4 billion yen lower sales. The firm gained 14.3 billion yen from fixed cost cut, 6.9 billion yen from inventory valuation, 2.7 billion yen from better operation rate and 8.1 billion yen from lower purchase cost. The firm estimates the operating profit is 6.5 billion yen for alumina and chemicals, 1.5 billion yen for aluminium flat and extrusion products, 3 billion yen for fabricated products and 7.5 billion yen for foil and powder in fiscal 2010.

Kobe Steel’s aluminium and copper unit reported 34.3 billion yen improvement in operating profit in fiscal 2009 from fiscal 2008 due to lower depreciation and cost cutting while the sales decreased by 117.6 billion yen. The unit didn’t disclose the profit target for fiscal 2010 but the profit and sales would increase from fiscal 2009 due to better demand in can, automobile and machinery.

Sumitomo Light Metal Industries reported 17.3 billion yen improvement in recurring profit in fiscal 2009 from fiscal 2008 despite of 44.7 billion yen lower sales including 24 billion yen down for rolled aluminium and 11.4 billion yen down for rolled copper. The firm gained 9.2 billion yen from cost cutting while the better profit was partly due to 7.7 billion yen gain from inventory valuation, 2.9 billion yen gain from foreign exchange and 1 billion yen gain from restructuring. The firm expects the recurring profit increases by 7 billion yen to 10 billion yen in fiscal 2010 due to 2.7 billion yen gain from restructuring and 2.8 billion yen cost cut.