Furukawa Electric to Keep High Production of Copper Strip in 4Q

Furukawa Electric’s copper and copper alloy strip output volume is expected to keep 80% level for January-March 2010 compared with April-September 2008, the recent demand peak. The demand is steady from leadframes and automotive connector pins. The metals company, the business unit of copper and copper alloy fabricated products, is estimated to gain operating profit at 200 million yen for January-March 2010, though the company posted operating loss at 6.4 billion yen for January-March 2009.

Copper and copper alloy strip production at Furukawa Electric’s Nikko works was averagely 3,860 tonnes per month in the first half of fiscal 2008 (April-September 2008). The production hit the high level though which didn’t reach initially planned 4,050 tonnes per month. The current output volume isn’t as high as in the first half of fiscal 2008 but recovered from the bottom in January-March 2009. The high operation is expected to continue within fiscal 2009.

The metals company posted operating loss at 3.7 billion yen in April-June 2009 while regained operating profit in and after July-September thanks to the demand recovery and the copper price upsurge. The company could gain operating profit in January-March 2010 if copper strip production keeps the present level.

Furukawa Electric’s consolidated net revenue is forecasted at 807 billion yen and operating profit at 15 billion yen for fiscal 2009.