Japan's Nippon Shokubai expects full-year net profit to plummet

07 February 2013 11:24  [Source: ICIS news]

TOKYO (ICIS)--Japanese chemical producer Nippon Shokubai predicts its 31 March, 2013 year-end net profit to plummet by 95% from the previous year to yen (Y) 1bn ($11m) due to the impact of a plant explosion at its Himeji site, the company said in a statement on Thursday.

Nippon Shokubai’s acrylic acid, acrylic esters and super absorbent polymer (SAP) facilities at Himeji, Hyogo prefecture, still remain shut following an explosion at the site on 29 September 2012, the producer said.

The company expects its operating profit for the full-year period to slump to Y10bn from Y31.1bn reported in the year before, and its net sales to drop by 16% to Y270bn.

Nippon Shokubai estimated the Himeji blast would have an impact of approximately Y21.5bn in total on its full-year financial results, the producer said.

Of the total, a loss of Y8.5bn would be a fixed cost due to the suspension of the plants’ operations, while an operating loss of Y13bn would be incurred caused by a decrease in production and sales volumes, Nippon Shokubai added.

($1 = Y93.38)

By: Tomomi Yokomura
+65 6780 4359

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly