Skip to main content

Sumitomo Chemical releases first quarter financial results

Published by
Hydrocarbon Engineering,


The Sumitomo Chemical Group has releases its consolidated financial results for the first quarter ended 30 June 2015. Sales decreased by JPY0.3 billion to JPY556.6 billion, compared with the same period of the previous fiscal year. The group posted operating income of JPY33.2 billion, ordinary income of JPY49.8 billion and net income attributable to owners of the parent of JPY34.0 billion, all representing y/y increases.

Segment breakdown

Petrochemicals and Plastics

Market prices of petrochemical products and synthetic resins declined because of lower feedstock prices. Shipments of petrochemical products and synthetic resins decreased due to a change in the commercial distribution channel for petrochemical products from Petro Rabigh and the restructuring of the petrochemical business at the Chiba Works. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales decreased by JPY29.1 billion to JPY198.5 billion, compared with the same period of the previous fiscal year. Operating income improved by JPY7.4 billion to JPY6.9 billion due to higher profit margins.

Energy and Functional Materials

Sales of aluminum and resorcinol, a raw material for adhesives, declined due to a decrease in shipments. Market prices for synthetic rubber dropped due to lower raw materials prices. As a result, the segment’s sales decreased by JPY2.1 billion to JPY46.5 billion, compared with the same period of the previous fiscal year. The operating loss increased by JPY0.4 billion, to JPY1.3 billion.

IT Related Chemicals

Although selling prices of polarising film used in liquid crystal displays (LCDs) and touchscreen panels declined, shipments of these products increased due to growth in demand. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales increased by JPY12.0 billion to JPY110.1 billion compared with the same period of the previous fiscal year. Due to lower selling prices, however, operating income (at JPY8.6 billion) was almost unchanged from the same period of the previous fiscal year.

Health & Crop Sciences

Sales of the feed additive methionine rose sharply due to higher market prices. As a result, including the positive effect of the weaker yen, the segment’s sales increased by JPY8.2 billion to JPY82.0 billion, compared with the same period of the previous fiscal year. Operating income grew by JPY10.0 billion to JPY16.1 billion.

Pharmaceuticals

The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales grew by JPY8.4 billion to JPY106.2 billion from the same period of the previous fiscal year. Operating income decreased by JPY4.4 billion to JPY5.8 billion, due to higher marketing and research and development costs.

Others

In addition to the above five segments, the Sumitomo Chemical Group engages in supplying electrical power and steam, providing services for the design, engineering, and construction management of chemical plants, providing transport and warehousing, and conducting materials and environmental analysis. The segment’s sales increased by JPY2.4 billion to JPY13.4 billion, compared with the same period of the previous fiscal year. Operating income grew by JPY1.1 billion to JPY1.1 billion.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/31072015/sumitomo-chemical-reports-first-quarter-results-1204/


 

Embed article link: (copy the HTML code below):