Sumitomo Chem Q1 operating income falls 24.6%

31 July 2007 05:51  [Source: ICIS news]

TOKYO (ICIS news)--Sumitomo Chemical on Tuesday reported a 24.6% year-on-year decline in first-quarter operating income due partly to high feedstock costs.

Consolidated operating income for the three months ended 30 June fell to yen (Y) 25.6bn ($204.8m) from Y34bn in the year before. Net sales rose 6.5% to Y439.2bn from Y412.3bn, while net income decreased 27.4% to Y14.8bn from Y20.4bn.

In the basic chemicals segment, sales volume of the feedstocks of fibres including caprolactam increased due to a rise of the market prices. Sales volume of methacrylates also rose for a similar reason.

As a result, the segment’s operating income for the three months increased 59.3% to Y4.3bn from Y2.7bn a year ago, while net sales rose 10.4% to Y77.2bn from Y69.9bn.

In the petrochemicals segment, sales volume of styrene monomer (SM) increased because the product price in the market rose due to the elevated costs of naphtha and other feedstocks.

Sales of synthetic resins also increased due to a rise in the market price.

The segment’s operating income in the first quarter ended 30 June, however, decreased 36.1% to Y2.3bn from Y3.6bn in the year-ago period due to the high feedstock costs, while net sales increased 14.9% to Y143.9bn from Y125.2bn.

($1 = Y119)

By: Tomomi Yokomura
+65 6780 4359

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