Japan's Sumitomo Chemical full-year net profit falls 77%

10 May 2012 07:55  [Source: ICIS news]

TOKYO (ICIS)--Japan’s Sumitomo Chemical on Thursday posted a 77% decrease in its full-year net profit to yen (Y) 5.59bn ($70m) from Y24.4bn a year earlier because of large extraordinary losses, the company said.

Sumitomo Chemical registered extraordinary losses of Y26.0bn during the full year to 31 March 2012 due to a write-down of investment in an unnamed affiliated company, it said in a statement.

Operating profit during the 12 months fell 31% year on year to Y60.7bn from Y88.0bn, while net sales were down 1.7% to Y1,947.9bn from Y1,982.4bn.

Full-year operating profit in the petrochemicals and plastics segment declined 45% to Y11.1bn from the previous year, while net sales rose 3.1% to Y679.6bn.

This was a result of decrease in shipments of synthetic resins and petrochemical products year on year due to the scheduled maintenance shutdowns of Sumitomo Chemical’s plants in Japan and overseas.

Besides, the impact of the 11 March 2011 earthquake and subsequent lower demand also contributed to the decline in earnings.

On the other hand sales rose on the back of higher market prices overseas and increased selling prices in Japan, the producer said.

($1 = Y80)

By: Tomomi Yokomura
+65 6780 4359

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