Ube Industries posts 44% rise in Q1 net income

04 August 2008 08:15  [Source: ICIS news]

TOKYO (ICIS news)--Japanese chemical producer Ube Industries has on Monday posted a 44% increase in its first-quarter net income to yen (Y) 6.5bn ($60m) compared with the previous year despite high feedstock costs, the slowdown of the US economy and Japan’s declining production and exports, the company said.

Net sales for the period increased 10.4% to Y177bn from Y160.3bn, it added in a statement.

Ube Industries’ first-quarter business results tended to be lower than other quarters due to "seasonal factors" such as the maintenance turnarounds of chemical, resin and fine products’ plants during this period, it said.

Demand for cement was generally higher in the second half and the declaration of sales of machinery products concentrated in the end of each fiscal year ending 31 March, the company added.

Net sales in the chemicals and resin segment rose 12.5% to Y60.9bn, Ube Industries said.

Shipments of polybutadiene (synthetic rubber), caprolactam and nylon resin were "favourable," it added.

The producer did not revise its forecast for its operating results for the first half ending 30 September or the full year from the previous forecast announced in early May.

($1 = Y108.25)

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By: Tomomi Yokomura
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