Japan's Shin-Etsu Q1 net profit falls 33% on quake-related losses

26 July 2011 09:00  [Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Shin-Etsu Chemical on Tuesday posted a 33% decrease in its first-quarter net profit to yen (Y) 23.8bn ($304m) from Y35.7bn in the same time a year earlier, partly on losses incurred as a result of the 11 March earthquake and tsunami, the company said in a statement.

Operating profit for the first three months to 30 June 2011 rose by 10.7% year on year to Y40.0bn, down from Y36.1bn. Net sales were down by 3.7% year on year to Y250.0bn, a decrease from Y259.7bn, according to Shin-Etsu.

First-quarter operating profit in the polyvinyl chloride (PVC) and chlor-alkali segment increased by 95% to Y6.06bn compared with the same period in the year before, while net sales decreased by 4.2% to Y67.5bn.

Domestic PVC sales suffered becuase of the temporary shutdown of Shin-Etsu’s plant in quake-hit Kashima, while profits of Shintech, the company’s PVC subsidiary in the US, improved from the previous year, Shin-Etsu said.

Shin-Etsu shut its 550,000 tonne/year PVC unit at Kashima in Ibaraki prefecture following the twin disasters because of a lack of feedstock. The PVC unit was fully restarted on 31 May.

($1 = Y78.28)

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By: Tomomi Yokomura
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