03 August 2010 09:10 [Source: ICIS news]
TOKYO (ICIS)--Japan's Showa Denko said on Tuesday it has posted a net profit of yen (Y) 4.21bn ($48.66m) in the second quarter, reversing a net loss of Y24.5bn recorded in the same period last year, driven by higher sales volume.
Operating profit in the second quarter of its financial year ending 30 June was Y10.7bn, compared with an operating loss of Y7.19bn in the year-ago period, while net sales rose by 19% year on year, from Y165.6bn to Y196.4bn, the chemical producer said.
Production of ethylene and propylene (PP) decreased year on year during the second quarter due to maintenance shutdowns of its plants. However, sales of olefins increased on the back of of higher selling prices, which reflected the price hikes of naphtha, the company said.
However, sales of organic chemicals decreased due to lower shipment volumes of vinyl acetate and other products, it said.
As a result, the petrochemicals segment’s second-quarter operating profit fell from Y2.55bn to Y575m, a year-on-year fall of 78%, while net sales rose by 11% to Y62.3bn from Y56.1bn in the same period last year, the company added.
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