Mitsubishi Materials Posts Net Loss, Toho Zinc Net Profit in F2009

Mitsubishi Materials announced on Wednesday the firm posted consolidated net loss of 66.6 billion yen for a financial year ended in March 2010. The firm gained operating profit of 12.7 billion yen but posted recurring loss of 9.5 billion yen due to equity method loss of 28.5 billion yen. Another negative factor for net profit was a writeoff of deferred tax assets at 26.5 billion yen.

Operating profit of the metals business unit decreased by 42% in fiscal 2009 from fiscal 2008. As to copper ingot, a smelting subsidiary in Indonesia increased output and reduced costs while substantial product sales decline and the trend of strong yen impacted the business profit. As to copper fabricated products, sales volume decreased for cars and electronic materials in the first half year.

The advanced materials & tools business unit posted operating loss of 5.2 billion yen in fiscal 2009 due to significant sales shrinkage of cemented carbide tools. The electronic materials & components business unit and the cement business unit also posted year-on-year lower sales and profits. The sales of polycrystalline silicon and accompanied products decreased. Meanwhile, the aluminium business unit returned to annual black.

For fiscal 2010, the firm forecasts annual net sales of 1.28 trillion yen with recurring profit of 30 billion yen and net profit of 5 billion yen. Sales of the products would recover for car and semiconductor industries. Negative effects by Yokkaichi poly silicon plant’s suspension is estimated at 1 billion yen on recurring profit and 4 billion yen on net profit.

On the same day, Toho Zinc announced its full-year financial results for fiscal 2009 ended in March 2010. The firm recovered from 5.2 billion yen of net loss in fiscal 2008 to 4.7 billion yen of net profit in fiscal 2009. Inventory evaluating profit expanded due to base metal prices’ upsurge and, consequently, annual operating profit increased to 8.3 billion yen, more than 4 times of fiscal 2008. The annual net sales lowered by 10% to 83.6 billion yen.

For fiscal 2010, Toho Zinc forecasts net sales increase by 8% to 90 billion yen, operating profit decline by 28% to 6 billion yen and net profit down by 36% to 3 billion yen.