Sumitomo Increases Metal and Resource Business Profit by 45% in F2008

Sumitomo Corporation plans to increase consolidation net profit of Metal material and resource department to 65.9 billion yen by 42% in fiscal 2008 at the ended of March 2009. The profit accounts for 27% of all departments. Metal material department profit is planned to decrease to 27 billion yen by 8% in fiscal 2008 from fiscal 2007 while resource department profit increases to 38.9 billion yen by 126%. The firm will aggressively invest to mine or mine rights.The firm will increase resource department profit due to rising raw material price for iron ore, coal or non-ferrous products. The profits is already increasing thanks to aggressive investments for iron, manganese or chrome ore business in South Africa, copper business in Peru and Indonesia or gold business in Alaska. The firm will invest to nickel and cobalt business in Madagascar, and coal business in Australia. The firm’s profit in fiscal 2007 increased to 29.2 billion yen by 11% for metal department in fiscal 2007 form 2006 due to good business of plate trade and steel sheet service business, while decreased to 17.2 billion yen by 23% due to revaluation loss of silver, zinc and lead business in Bolivia. Total profit decreased to 46.4 billion yen by 4%.