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Sumitomo revises forecast due to rising feedstock prices

30
Sep '08
Based on its recent performance trends, Sumitomo Chemical Co., Ltd. (the Company) has revised the forecast announced on May 9, 2008 as detailed below.

Reasons for the Revision

(First Half)
The Company has taken higher feedstock costs and other factors into consideration in revising its first half forecast. The price of domestic naphtha, which at the time of the previously announced forecast was estimated at ¥67,000/KL, has been revised to ¥79,000/KL.

The dollar exchange rate, previously estimated at ¥100/USD, has been revised to ¥105/USD.

As a result of these revisions, the Company forecasts weaker performance mainly in its Petrochemicals & Plastics and Basic Chemicals segments and has revised its financial forecasts downward. Compared with the previously announced forecast, the Company expects operating income, ordinary income and net income to decrease by 18.2%, 19.2%,and 50.0% respectively.

(Full Year)
With regard to the full-year forecast, the domestic naphtha price was previously estimated at ¥67,000/KL, and has been revised to ¥75,000/KL (¥70,000/KL for the second half).

In addition, the dollar exchange rate was previously estimated at ¥100/USD and has been revised to ¥105/USD (¥105/USD for the second half). As a result of these revisions, the Company forecasts weaker performance mainly in its Petrochemicals & Plastics and Basic Chemicals segments and has revised its financial forecasts downward. Compared with the previously announced forecast, operating income is expected to decrease by 26.3.

The revised plan of the Rabigh Project in Saudi Arabia to start operation of some of the facilities in the first quarter of 2009 and other factors are forecast to have an impact on equity earnings. As a result, the Company expects ordinary income and net income to decrease by 40.0% and 72.7% respectively.

Sumitomo Chemical Co. Limited is one of Japan's leading chemical companies, offering a diverse range of products in the fields of basic chemicals, petrochemicals, fine chemicals, IT-related chemicals, agricultural chemicals and pharmaceuticals.

For more detial click here.

Sumitomo Chemical Co. Ltd.


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