TOKYO, Aug 7, 2019 - (JCN Newswire) - Showa Denko (SDK; TSE:4004) hereby revises its forecast of consolidated financial results for full-year 2019, which was announced on February 14, 2019, in view of the current economic trends, as follows:
1. Revised forecast of consolidated business results for Jan. 1 - Dec. 31, 2019
(Millions of yen, excepting net income per share)
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Net sales Operating Ordinary Net income Net income
income income attributable per share (y)
to owners of
the parent
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Earlier forecast (A)
(Announced on Feb. 14, 2019)
1,100,000 190,000 185,000 120,000 822.61
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Revised forecast (B)
(Announced on Aug. 7, 2019)
980,000 145,000 142,000 90,000 616.96
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(B) - (A) -120,000 -45,000 -43,000 -30,000
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Percentage of changes
-10.9% -23.7% -23.2% -25.0%
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Reference
(2018 results) 992,136 180,003 178,804 111,503 758.15
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2. Reasons for the revision of consolidated performance forecast
Net sales in the Petrochemicals segment will fall due to lower market prices for ethylene and other major product lines, reflecting the decline in naphtha prices. Net sales in the Inorganics segment will also fall. In the graphite electrode business, SDK will cut production at its manufacturing sites in Europe relative to quality improvement efforts as well as advancement in inventory adjustment on the part of customers. Furthermore, the Chinese market is stagnant due partly to increased production of low- and medium-grade electrodes. Net sales in the Chemicals segment will fall due to lower shipment volumes of high-purity electronic gases, reflecting adjustment of the production for the IT industry. Net sales in the Aluminum segment will also fall due to lower volumes of shipments to industrial machinery and automobile industries.
Operating income will decrease following the fall in net sales. In particular, operating income in the Inorganics segment and the Petrochemicals segment will be affected by the production cut of graphite electrodes and the weakening olefins market, respectively.
As a result, ordinary income, and net income attributable to owners of the parent, will decrease. However, there is no change in the forecast of paying term-end dividends of 80 yen per share.
Contact:
Showa Denko K.K. IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323
Topic: Press release summary
Source: Showa Denko K.K.
Sectors: Chemicals, Spec.Chem
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