San-Etsu Metals Returns to Profitability in Fiscal 2009

San-Etsu Metals, Japanese largest brass bar and wire maker, posted 3.407 billion yen of the consolidated recurring profit in fiscal 2009 ended March 2010 while the firm posted 1.449 billion yen of the recurring loss in fiscal 2008, announced on Thursday. The firm posted the profit when brass bar demand increased and the inventory valuation gain lifted the profit. The sales decreased by 19.3% to 3.445 billion yen due to the decline in the products price in the first half. The annual dividend was 6.5 yen per share as same as fiscal 2008.

The firm estimates that the consolidated sales increases by 19.6% to 41.2 billion yen for fiscal 2010 from fiscal 2009 when the demand increased to around 90% level compared with the level before financial crisis and copper price increased. However, the recurring profit is estimated to decrease by 64.8% to 1.2 billion yen due to the decrease in the profit from the inventory valuation. However, the firm plans to increase the annual dividend by 1.5 yen to 8 yen per share.

The firm doubles the capital expenditure to 965 million yen in fiscal 2010 compared with the level in fiscal 2009 when the firm starts the construction of new precision component plant. The firm increases the output of precision component by 20% in fiscal 2011.