Dowa Metals expects the first half of the year to fall short financially compared to the same period last year because of COVID-19’s impact, despite projecting demand for auto parts and services recovering.
For H1 FY2020, which runs from April to September of this year, the company forecasted that net sales of non-ferrous metals, including copper and zinc, would increase to JPY110.9bn ($1bn) from JPY107.8bn in H1 FY2019. The company’s operating income for non-ferrous metals, including the aforementioned two metals, is expected to remain unchanged in the first half of the year at JPY3.5bn.
In Q2 of the company’s fiscal, which runs from July to September 2020), non-ferrous metal net sales are forecasted to fall to JPY50.4bn from JPY49.7bn in Q2 FY2019. Dowa Metals’ operating incoming is projected to decline to zero from JPY600mn in Q2 2019.
In the first quarter of FY2020, the company’s net sales of non-ferrous metals increased by 2.3pc to JPY60.4bn from JPY58.1bn in Q1 FY2019, while it’s operating income of non-ferrous metals also jumped up by 0.7pc to JPY3.4bn from JPY2.7bn in the same period last year.
The company’s total net sales in Q1 FY2020 declined by 1pc to JPY115.4bn from JPY116.2bn while its operating income declined by 29pc to JPY4.9bn from JPY6.8bn in Q1 2019.