Asahi Kasei sees fall in Oct home order values

10 November 2008 12:58  [Source: ICIS news]

TOKYO (ICIS news)--The value of housing construction orders that Asahi Kasei received in October decreased 11% to an undisclosed amount compared with the same period a year before, the Japanese chemical producer said in a preliminary report on Monday.

Orders of unit and multi-dwelling homes declined by a wide margin due to a high level of orders in October 2007, the company said.

From April to October, the value of home construction orders was 1% higher than the same period a year earlier, according to the producer.

Asahi Kasei reported on 5 November that consolidated operating income in the homes segment for the six months ended 30 September decreased 37.3% to yen (Y) 3bn ($300.3m) year on year, partly due to a surge in construction costs caused by high feedstock prices.

Net sales in the segment increased 2% to Y170.3bn.

Petrochemical products including polyvinyl chloride (PVC) and polystyrene (PS) resins are used extensively in homes for insulating window sashes and floors.

Analysts expect that continued PVC demand growth in China and a recovery in the US housing market will drive worldwide PVC consumption.

($1 = Y98.92)

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By: Tomomi Yokomura
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