Japan’s leading PM groups post better than expected full year results
May 30, 2012
Most Japanese companies and conglomerates have been reporting their full year financial results for the period April 2011 to March 2012, and many had been expecting to post reduced income and profits due to the aftermath of the earthquake and tsunami in North East Japan in March 2011. However, whilst some Japanese companies involved in PM were exposed to the earthquake and also the severe flooding in Thailand later in the year, the results have so far been better than expected.
Sumitomo Electric Industries Ltd (SEI)
Industrial conglomerate SEI achieved very good results considering the turmoil created by the natural disasters. Annual sales to end of March 2012 were reported at Yen 2,200,000 m (US$ 27,700m) an increase of 6.8% year-on-year thanks to a strong second half. Net income was put at Yen 70,000 m ($882m) compared with Yen 58,861 m in 2011.
The ‘Industrial Materials & Others’ division is one of six business segments at SEI and includes the production of cemented carbides (hardmetals), PM parts, and the fully owned A.L.M.T. subsidiary which produces W, Mo, heavy metal, thermal management materials, ceramics, diamond tools and hardmetals. The division posted total sales of Yen 310,000 m ($3.900m) – an increase of 11.5% year-on-year. PM part sales at SEI were reported to have increased by 18.8% in the full year to March 2012 reaching Yen 46,800m ($589m) whilst cemented carbides surged by 24.5% in the same period to Yen 85,700, ($1.079m). A.L.M.T. contributed Yen 45,800m ($577m) to sales – an increase of 4.5%.
Mitsubishi Materials Corp. (MMC)
MMC managed a 4.4% increase in net sales to reach Yen 1,440.00m ($18.100m) despite the effect of the earthquake in Japan and flooding in Thailand. Net income at Yen 9,500 m was below expectations even with the influence of the disasters.
The company’s ‘Advanced Materials & Tools’ business, which includes PM parts and cemented carbides (hardmetals) reported full year sales of Yen 144,200 m ($1.816m) which was on par with the sales achieved the previous full year. However, Net income was down by 2.8% to Yen 12,300 m ($155m ).
MMC is forecasting net income for this division to reach Yen 17,000 m in 2013 and to Yen 24,000 m in 2014 due to expansion of overseas sales, entry into new product markets and establishment of a PM plant in Guangdong, China.
Hitachi Chemicals Ltd
Hitachi Chemicals Ltd reported that full year group sales were down 4.9% to Yen 473,069 m ($5.959m) and that net income dropped by 13.3% to Yen 16,427m ($207m). The group’s ‘Advanced Components & Systems’ division, which includes Hitachi Powdered Metals Ltd, contributed Yen 232,658 m ($2,931m) m in sales to the end of March 2012 – a decrease of 5.2% from the previous fiscal year.
Hitachi Chemicals is forecasting an increase in sales of around 8% in the fiscal year ending March 31, 2013, and significant improvements in net income.
Posted by: Paul Whittaker, Editor ipmd.net, [email protected]
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