Sumitomo Chemical : Announces Revisions to its Financial Forecast for the Half-year Ended September 30, 2014
October 21, 2014 at 02:58 am EDT
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For Immediate Release October 21, 2014
Sumitomo Chemical Announces Revisions to its Financial Forecast for the
Half-year Ended September 30, 2014
Based on recent performance trends, Sumitomo Chemical Co., Ltd. has revised its consolidated financial forecast for the half-year ending September 30, 2014, previously announced on May 12,
2014, as detailed below.
Revisions to Consolidated Financial Forecast for the Half-Year Ending September 30, 2014
(Millions of yen)
Sales
Operating
Income
Ordinary
Income
Net Income
Earnings per
Share (yen)
Previous Forecast (A)
1,100,000
35,000
45,000
10,000
6.12
Revised Forecast (B)
1,128,000
36,000
52,000
22,000
13.46
Variance in Amount (B-A)
18,000
1,000
7,000
12,000
Variance in Percentage (%)
1.6
2.9
15.6
120.0
Results for Half-Year ended
September 30, 2013
1,050,806
46,332
44,250
12,452
7.62
(Reasons for the Revision)
Despite a decrease in shipments of products in the IT-related Chemicals and Health & Crop Sciences segments, sales and operating income are expected to exceed the previous forecast due to higher market prices of products in the Petrochemicals & Plastics and Basic Chemicals segments as well as an increase in shipments of these products.
Ordinary income and net income are also anticipated to be above previous expectations as the company records foreign exchange gains as non-operating income due to a larger-than-expected decline in the yen's value at the end of the half-year. Another positive factor is that the company sold certain idle properties and investment securities during the second quarter, which the company originally anticipated for the third quarter or later.
Earnings projections for the full year ending March 31, 2015, are now being prepared and will be presented at the time of the announcement of half-year financial results slated for October 31.
Cautionary Statement
Statements made in this document with respect to Sumitomo Chemical's current plans, estimates, strategies and beliefs that are not historical facts are forward-looking statements about the future performance of Sumitomo Chemical. These statements are based on management's assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties. The important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical's markets; demand for, and competitive pricing pressure on, Sumitomo Chemical's products in the marketplace; Sumitomo Chemical's ability to continue to win acceptance for its products in these highly competitive markets; and movements of currency exchange rates.
Sumitomo Chemical Co Ltd is one of the Japanese largest chemical groups. The group is also manufacturing and marketing pharmaceutical products. Net sales break down by family of products as follows:
- petrochemical and plastic products (25.8%): ethylene, polyethylene, propylene, elastomers, agricultural films, etc.;
- pharmaceutical products (23.9%): ethic drugs, radiopharmaceutical products, etc.;
- telecommunication chemical products (18.9%): optic films, pigments, filters, etc.;
- agrochemical and fine chemistryproducts (18.5%): insecticides, herbicides, fertilizers, food additives, etc.;
- functional chemical products (10.7%): methanol, caustic soda, aluminum hydroxide, alumina, nitric acid, acrylonitrile, active pharmaceutical ingredients, polymeric additives, resorcine, colorants, etc.;
- other (2.2%).
Net sales break down geographically as follows: Japan (31.7%), China (19.2%), Asia (19.5%), North America (17.7%), Europe (4.2%) and other (7.7%).
SUMITOMO CHEMICAL CO., LTD. 
