Ailing Japan Light Metal Rerollers under Slow Demand

Japanese major 5 light metal rerollers posted operating loss for fiscal 2008 ended March 2009 due to slower demand in the second half year Furukawa-Sky Aluminum posted the profit. The lower aluminium ingot price also impacted on the results. They could be suffered from lower demand while automobile and some industries recover from the bottom.

Nippon Light Metal posted net loss for fiscal 2008 as fiscal 2007. The firm suffered from wider loss from construction materials. The business was loss making mainly for flat and extrusion products. The firm expects the construction material unit regains profitability.

Kobe Steel posted operating loss for aluminium and copper unit for fiscal 2008 due to inventory valuation loss. The sales decreased from fiscal 2007 except for can materials while the unit posted impairment loss for copper flat products operation. The firm expected loss for fiscal 2009 despite of relative better demand condition.

Sumitomo Light Metal Industries posted worse results due to lower metal price and sales volume in fiscal 2008 from fiscal 2007. The firm expects to regain profitability in fiscal 2009 through cost cutting effort.

Furukawa-Sky Aluminum reduced the operating profit for fiscal 2008 from fiscal 2007 due to lower sales and higher depreciation. The firm expects break even for the net profit through better export sales for can and printing plate. See attached table.