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Wednesday, 7 August 2019, 15:05 HKT/SGT

Source: Showa Denko K.K.
SDK Revises 2019 Consolidated Performance Forecast

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)
                Net sales  Operating  Ordinary  Net income     Net income
                           income     income    attributable   per share (y)
                                                to owners of
                                                the parent
Earlier forecast (A)
(Announced on Feb. 14, 2019)
                1,100,000    190,000   185,000       120,000        822.61
Revised forecast (B)
(Announced on Aug. 7, 2019)
                  980,000    145,000   142,000        90,000        616.96
(B) - (A)        -120,000    -45,000   -43,000       -30,000
Percentage of changes
                   -10.9%     -23.7%    -23.2%        -25.0%
(2018 results)    992,136    180,003   178,804       111,503        758.15
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.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/ graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit

Showa Denko K.K. IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323

Aug 7, 2019 15:05 HKT/SGT
Source: Showa Denko K.K.

Showa Denko K.K. (TSE: 4004)

Topic: Press release summary
Sectors: Chemicals
From the Asia Corporate News Network

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