Japan 3 Major Battery Makers Secure Black Figures in F2008

Japanese 3 major battery makers gained black figures for a full fiscal year ended in March 2009 thanks to lead price down despite of year-on-year lower revenues. GS Yuasa Corporation and Furukawa Battery posted year-on-year higher operating profits. For a latest fiscal year to March 2010, 3 makers estimate year-on-year decline of revenues and profits due to less automobile production and worse demand for repairing batteries in warm winter.

Their lead battery productions decreased by around 20% in fiscal 2008 (Apr08-Mar09) from fiscal 2007. However, they could gain profits since lead market price dropped down and price hike of repairing batteries contributed to better profitability.

GS Yuasa Corporation marked the record profit in fiscal 2008. The batteries & power supplies business unit posted operating profit of 16.5 billion yen, increasing by 32.7% from fiscal 2007 despite of sales decrease of automotive batteries.

Shin-Kobe Electric Machinery’s battery & electric equipment business unit posted operating profit of 5.2 billion yen in fiscal 2008, increasing by 60% from fiscal 2007. The firm covered 5% sales decrease of automotive batteries by sales expansion of repairing batteries.

Furukawa Battery’s lead battery revenue decreased by 12.1% year-on-year through fiscal 2008. The sales for new vehicles declined in and after the third quarter. However, the firm gained recurring profit of 3.5 billion yen in fiscal 2008, increasing by 170% from fiscal 2007, thanks to lead metal price down.