Japan Major Copper Fabricators Expects for High Profits in F2010

Japanese major 4 copper fabricators gained consolidated annual operating profits for fiscal 2009 ended in March 2010 though Furukawa Electric’s metal unit posted loss. Profits were attributed to continuous uptrend of material prices and sales recovery. For fiscal 2010, all 4 makers plan annual operating profits other than KITZ which didn’t announce financial forecast for the business unit. Three makers other than Furukawa Electric expect for higher profits than in fiscal 2007, the recent peak before Lehman Shock.

San-Etsu Metals returned to the black after 2 financial years. Market price of brass turning scrap, the main material for brass bar, almost kept uptrend in fiscal 2009 and, as a result, the firm could gain profits by cheaper material cost and higher product price. The firm’s brass bar and wire sales increased by 0.4% to 66,063 tonnes in fiscal 2009 from fiscal 2008.

Other major brass makers, KITZ and Nippon Shindo also posted annual operating profits. KITZ’s copper rolling unit generated profit from fixed cost reduction by integration of its 2 subsidiaries. Nippon Shindo tried to shorten plants’ operation time and minimize costs for employment and distribution.

Among sheet and strip makers, DOWA Holdings’ metal processing unit gained annual operating profit thanks to the rapid demand recovery in automobile, electronic material and semiconductor industries.

Furukawa Electric’s metal unit posted annual loss but the loss more than halved from the previous fiscal year. Copper strip sales steadily recovered for semiconductors and cars, and the firm returned into the black in and after July-September 2009. The firm aims to gain annual operating profit for the business unit in fiscal 2010, the first black since fiscal 2007.