Summary of Consolidated Financial Results
1. Summary
1.1 Progress toward forecasts
Operating Income of 10.8 billion yen in three months ended December 31st 2017 was higher YOY.
In nine months ended December 31st 2017, the cost of R & D increased mainly in the healthcare field, on the other hand shipment of chloroprene rubber and electronics & innovative products increased in addition sales price revisions corresponding to rising raw material prices. Therefore operating income was 25.1 billion yen, and ordinary income was 25.6 billion yen, net income was 18.9 billion yen, all of them are higher YOY and highest ever the 3rd quarter.
We expect to continue strong shipment of chloroprene rubber and electronic and advanced products. Therefore the full-year forecast operating profit, upward to 33.0 billion yen.
1.2 The result of 3rd quarter ( Apr to Dec) and the forecast of fiscal year by segment
Elastomers & Performance Plastics : Earnings of 3rd quarter 11.7 billion yen were higher YOY, because of non-shutdown maintenance year and price revision of chloroprene rubber. We estimate 15.5 billion yen of earnings, 2.0 billion higher than last estimation, due to continuance of those trends .
The Infrastructure & Social Solutions : Earnings of 3rd quarter were 0.7 billion yen same level as previous year. Although sales of special cement additives were lower YOY, shipments of alumina fiber, corrugated tubes for both agriculture and civil engineering and exported cement were increased. We estimate 1.0 billion yen of earnings 0.5 billion yen lower than last estimation.
Electronics & Innovative Products : Earnings of 3rd quarter 7.0 billion yen were higher YOY. Because shipment of fused silica filler and spherical alumina for semiconductor sealants, ALONBIGHT(SiAlON Phosphor), electronic packing materials, thermally conductive aluminum substrates and highly-reliable thermally conductive plates were increased.
We expect earnings of 4th quarter will be higher YOY since the sales of these products will continue to gain. As a result in fiscal year, we estimate earnings will be 9.5 yen billion yen, same as last estimation.
Living & Environmental Products : Earnings of 3rd quarter 1.0 billion yen and lower YOY. Because shipments of synthetic fiber decreased YOY. We estimate earnings will be 1.0 billion yen, 0.5 billion yen lower than last estimation.
Life Innovation : Although sales volume of reagent increased, due to the fact that production and sales of influenza vaccines accompanying delays in the selection of vaccine production strains declined YOY and the burden of R & D expenses, etc., earnings of 3rd quarter were 4.3 billion yen, lower YOY. We estimate earnings will be 5.5 billion yen, same last estimation.
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | Incr. △Decr. | |
Net Sales | 293.1 | 266.7 | 26.4 |
Operating Income | 25.1 | 18.8 | 6.4 |
Ordinary Income | 25.6 | 17.5 | 8.1 |
Net Income | 18.9 | 13.6 | 5.4 |
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | Incr. △Decr. | ||
Elastomers & Performance Plastics materials | Sales | 131.1 | 108.2 | 22.9 |
Operating Income | 11.7 | 4.6 | 7.1 | |
Infrastructure & Social Solutions | Sales | 40.0 | 38.6 | 1.4 |
Operating Income | 0.7 | 0.9 | ᇞ 0.2 | |
Electronics & Innovative Products | Sales | 40.2 | 33.9 | 6.4 |
Operating Income | 7.0 | 5.1 | 1.9 | |
Living & Environment Products | Sales | 31.0 | 31.2 | ᇞ 0.2 |
Operating Income | 1.0 | 1.5 | ᇞ 0.5 | |
Life innovation | Sales | 24.9 | 26.9 | ᇞ 2.0 |
Operating Income | 4.3 | 6.4 | ᇞ 2.1 | |
Others/ Companywide | Sales | 26.0 | 28.0 | ᇞ 2.1 |
Operating Income | 0.5 | 0.3 | 0.2 | |
Total | Sales | 293.1 | 266.7 | 26.4 |
Operating Income | 25.1 | 18.8 | 6.4 |
1.4 Consolidated Financial Results and Forecast | Billions of Yen | |||
293.1 | 266.7 | 26.4 | 400.0 | 362.6 |
25.1 | 18.8 | 6.4 | 33.0 | 25.8 |
25.6 | 17.5 | 8.1 | 31.0 | 23.2 |
18.9 | 13.6 | 5.4 | 22.0 | 18.1 |
2. Net Sales and Operating Income by segments | Billions of Yen | |||
131.1 | 108.2 | 22.9 | 179.0 | 151.7 |
11.7 | 4.6 | 7.1 | 15.5 | 7.8 |
40.0 | 38.6 | 1.4 | 54.0 | 51.8 |
0.2 | 1.0 | 0.9 | ||
40.2 | 33.9 | 6.4 | 56.0 | 46.3 |
7.0 | 5.1 | 1.9 | 9.5 | 7.1 |
0.2 | 42.0 | 41.2 | ||
0.5 | 1.0 | 1.5 | ||
2.0 | 34.0 | 34.0 | ||
2.1 | 5.5 | 7.9 | ||
2.1 | 35.0 | 37.7 | ||
0.5 | 0.3 | 0.2 | 0.5 | 0.7 |
293.1 | 266.7 | 26.4 | 400.0 | 362.6 |
25.1 | 18.8 | 6.4 | 33.0 | 25.8 |
FY2017 Forecast Apr to Mar | FY2016 Actual Apr to Mar |
400.0 | 362.6 |
33.0 | 25.8 |
31.0 | 23.2 |
22.0 | 18.1 |
FY2017 Forecast Apr to Mar | FY2016 Actual Apr to Mar |
179.0 | 151.7 |
15.5 | 7.8 |
54.0 | 51.8 |
1.0 | 0.9 |
56.0 | 46.3 |
9.5 | 7.1 |
42.0 | 41.2 |
1.0 | 1.5 |
34.0 | 34.0 |
5.5 | 7.9 |
35.0 | 37.7 |
0.5 | 0.7 |
400.0 | 362.6 |
33.0 | 25.8 |
3. Key operating factors
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | Incr. △Decr. | |
Investment Capital expenditu M&A etc. | 16.5 | 18.1 | ᇞ 1.6 |
4.2 | 0.8 | 3.4 | |
20.7 | 18.9 | 1.8 | |
Depreciation | 18.6 | 18.2 | 0.3 |
Research and Development | 10.2 | 9.6 | 0.6 |
Interest-bearing debt | 123.5 | 122.6 | 0.9 |
1.6
4.2
0.8
3.4
20.7
18.9
1.8
18.6
18.2
0.3
10.2
9.6
0.6
123.5
122.6
0.9
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | |
Yen / USD exchange rate | 111.8 | 106.9 |
Naphtha price (yen/ Kl) | 40,000 | 32,800 |
111.8 40,000
106.9 32,800
Billions of Yen
FY2017 Forecast Apr to Mar | FY2016 Actual Apr to Mar |
27.0 | 25.7 |
4.2 | 1.2 |
31.2 | 26.9 |
25.0 | 24.4 |
15.0 | 13.0 |
112.0 | 113.7 |
27.0
25.7
4.2
1.2
31.2
26.9
25.0
24.4
15.0
13.0
112.0
113.7
4. Sales by segments
FY2017 Forecast Apr to Mar | FY2016 Actual Apr to Mar |
111.4 | 108.8 |
42,550 | 34,600 |
Billions of Yen
111.4 42,550
108.8 34,600
Sales | |||||
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | Incr. △Decr. Sales priceSales volume | |||
Elastomers & Performance Plastics | 131.1 | 108.2 | 22.9 | 20.0 | 2.9 |
Infrastructure & Social Solutions | 40.0 | 38.6 | 1.4 | ᇞ 0.0 | 1.4 |
Electronics & Innovative Products | 40.2 | 33.9 | 6.4 | ᇞ 0.3 | 6.7 |
Living & Environment Products | 31.0 | 31.2 | ᇞ 0.2 | 0.5 | ᇞ 0.7 |
Life innovation | 24.9 | 26.9 | ᇞ 2.0 | ᇞ 0.4 | ᇞ 1.6 |
Others | 26.0 | 28.0 | ᇞ 2.1 | - | ᇞ 2.1 |
Total | 293.1 | 266.7 | 26.4 | 19.8 | 6.6 |
4. Operating income by segments
Operating income | ||||||
FY2017 3rd Quarter Apr to Dec | FY2016 3rd Quarter Apr to Dec | Incr. △Decr. Sales priceSales volumeOperating cost and others | ||||
Elastomers & Performance Plastics | 11.7 | 4.6 | 7.1 | 20.0 | 2.2 | ᇞ 15.0 |
Infrastructure & Social Solutions | 0.7 | 0.9 | ᇞ 0.2 | ᇞ 0.0 | 0.3 | ᇞ 0.5 |
Electronics & Innovative Products | 7.0 | 5.1 | 1.9 | ᇞ 0.3 | 3.5 | ᇞ 1.3 |
Living & Environment Products | 1.0 | 1.5 | ᇞ 0.5 | 0.5 | ᇞ 0.3 | ᇞ 0.7 |
Others | 4.3 | 6.4 | ᇞ 2.1 | ᇞ 0.4 | ᇞ 0.9 | ᇞ 0.9 |
Others/Companywide | 0.5 | 0.3 | 0.2 | - | 0.0 | 0.2 |
Total | 25.1 | 18.8 | 6.4 | 19.8 | 4.8 | ᇞ 18.2 |
Denka Co. Ltd. published this content on 07 February 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 07 February 2018 02:24:06 UTC.
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