Japan's Showa Denko posts 45% decline in full-year net profit

14 February 2013 12:06  [Source: ICIS news]

TOKYO (ICIS)--Showa Denko’s full-year net profit fell by 45% year on year to yen (Y) 9.37bn ($100.3m, €74.5m), mainly because of a decrease in the profits from its chemicals and aluminum segments, the Japanese chemicals company said on Thursday.

Operating profit for the year to 31 December 2012 fell by 41% to Y28.1bn from the previous year, while net sales were down by 13% to Y739.8bn.

The petrochemicals segment recorded a full-year operating loss of Y977m, swinging from an operating profit of Y3.48bn the year before, while net sales fell by 24% to Y190.9bn, partly because of a decrease in ethylene production, due to the unexpected shutdown of its 690,000 tonne/year Oita cracker in the first half of the year, Showa Denko said.

The company also announced today that it is to merge with its wholly-owned subsidiary Marusho Kogyo, effective 25 April this year.

Marusho Kogyo had a shipment base for liquefied ammonia and industrial aqueous ammonia in Fukushima prefecture, Japan, but the facility was damaged by the 2011 tsunami.

Showa Denko said that it plans to reconstruct the shipment base and to merge with Marusho Kogyo for the purpose of ensuring stable supply in the Tohoku region, northeastern Japan, based on an integrated system of production and sale.

($1 = €0.74, Y = $93.45, €1 = Y125.69)

Additional reporting by Tom Brown.

By: Tomomi Yokomura
+65 6780 4359

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