Sumitomo petrochemical sales up in nine months to Dec 31

04 Feb '13

4 min read

The Sumitomo Chemical Group’s sales for the nine months ended December 31, 2012, were ¥1,422.3 billion, a decrease of ¥21.6 billion compared with the same period of the previous fiscal year. Operating income was ¥36.8 billion and ordinary income was ¥37.6 billion, both representing year-on-year decreases. The Group posted a net loss of ¥40.7 billion, as an additional amount was recorded as a corporate tax adjustment due to a reversal of deferred tax assets.

The Sumitomo Chemical Group’s financial results by business segment for the nine-month period were as follows.

Basic Chemicals

Market prices fell for raw materials for synthetic fibers, and shipments of these products also decreased. Sales of methyl methacrylate and aluminum declined due to lower market prices. As a result, the segment’s sales decreased by ¥22.0 billion from the same period of the previous fiscal year, to ¥193.7 billion, and operating income declined by ¥15.6 billion, to a loss of ¥4.8 billion.

Petrochemicals & Plastics

Shipments from a sales subsidiary increased from the previous fiscal year’s level, which was low due to periodic maintenance shutdowns at the manufacturing plants of Petro Rabigh in Saudi Arabia. Sales of petrochemical products and synthetic resins decreased in Singapore and Japan due to lower market prices overseas and a decline in demand at home and abroad. As a result, the segment’s sales rose by ¥13.9 billion compared with the same period of the previous fiscal year, to ¥505.5 billion, but operating income decreased by ¥7.9 billion, to a loss of ¥1.7 billion.

IT-related Chemicals

Shipments of polarizing film used in liquid crystal displays (LCDs) rose, but shipments of color filters declined. Sales prices of both polarizing film and color filters fell. Meanwhile, a newly-built touchscreen panel facility in South Korea began full-fledged operation in this 3rd quarter. As a result, the segment’s sales increased by ¥0.2 billion compared with the same period of the previous fiscal year, to ¥221.3 billion, and operating income declined by ¥4.1 billion, to ¥7.2 billion.

Health & Crop Sciences

In the area of crop protection chemicals, shipments of herbicides remained strong in overseas markets, but sales declined due to seasonal effects caused by a change in an overseas subsidiary’s fiscal year to the end of March from the end of December. Shipments of pharmaceutical chemicals and the long-lasting insecticidal mosquito net, Olyset Net, decreased due to lower demand. Market prices of the feed additive methionine declined. As a result, the segment’s sales decreased by ¥20.6 billion compared with the same period of the previous fiscal year, to ¥170.2 billion, and operating income declined by ¥8.6 billion, to ¥8.9 billion.

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