Japan’s Sumitomo swings to $207m Q1 net profit on strong sales

30 July 2010 05:44  [Source: ICIS news]

TOKYO (ICIS)--Japan’s Sumitomo Chemical has posted a first quarter net profit of yen (Y) 18bn ($207m), reversing a net loss of Y1.5bn year on year, on increased petrochemical shipments following the starting up of a new plant, it said on Friday.

Operating profit for the three months to 30 June 2010 was Y34bn, up from Y2bn the previous year, while net sales were up 44% to Y491.2bn from Y340.8bn year on year, the chemicals firm said.

First-quarter operating profit in the petrochemicals segment was Y3.6bn, reversing an operating loss of Y4.6bn in the first quarter of 2009, while net sales rose 63% to Y156.2bn from Y96.1bn in year-ago period, it added.

Sales of petrochemical products had increased significantly following the start up of the Petro Rabigh chemical complex, Sumitomo’s joint venture project in Saudi Arabia, in April 2009, the company said.

Increased sales due to improved market conditions overseas had allowed the company to raise the prices of its petrochemical products which offset the high costs of naphtha and other feedstocks, Sumitomo added.

($1 = Y86.92)

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By: Tomomi Yokomura
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