April 4, 2014 11:52 pm JST

Dowa Holdings pretax profit likely jumped 28% in fiscal 2013

TOKYO -- Nonferrous-metal giant Dowa Holdings Co. likely generated a group pretax profit of 35 billion yen ($333 million) for the year ended Monday, up 28% on the year.

     This topped the projected 21% rise to 33 billion yen. Earnings growth in the environmental and recycling business, mainly in Southeast Asia, drove the result.

     Sales are estimated at some 430 billion yen, a 3% gain on the year and 4 billion yen better than projected. As oil field development expands in Southeast Asia, the company processed more sludge waste from drilling in Indonesia.

     Thanks to a weaker yen, the export profitability of metal refining improved. Amid growing auto production worldwide, zinc alloys for related applications fared well.

     In smartphone-related operations, demand for sensors grew. Silver powder for solar panels also logged a solid performance.

     Operating profit likely rose 34% to 33 billion yen, up 2.5 billion yen from the projection. Profit in the environmental and recycling business apparently jumped 40% or so, to a little more than 9 billion yen.

(Nikkei)