TOKYO, Dec 12, 2017 - (JCN Newswire) - Showa Denko ("SDK"; TSE:4004) hereby announces revised forecast of consolidated financial results for full-year 2017. SDK announced the earlier forecast on July 24, 2017, and decided this time to revise it, taking the recent business trends into consideration. However, the forecast of net income attributable to owners of the parent as shown in the table below remains the same as that in the earlier forecast because it takes time to scrutinize the effect of the business integration between SDK and former SGL GE Holding GmbH (currently SHOWA DENKO CARBON Holding GmbH), which SDK acquired on October 2, 2017.
1. Revised forecast of consolidated business results for January 1 - December 31, 2017
(Millions of yen)
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Net sales Operating Ordinary Net income Net income
income income attributable to attributable to
owners of the owners of the
parent parent per share
(yen)
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Earlier forecast (A)
(Announced on July 24, 2017)
762,000 60,000 43,500 21,000 147.34
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Revised forecast (B)
(Announced on Dec. 12, 2017)
773,000 70,000 55,000 21,000 147.34
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(B) - (A) 11,000 10,000 11,500 0
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Percentage of changes
1.4% 16.7% 26.4% -
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Reference Results for January 1 - December 31, 2016
671,159 42,053 38,690 12,305 86.27
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Reasons for the revision of consolidated performance forecast
Net sales are expected to exceed the earlier forecast. Net sales in the Inorganics segment are expected to exceed the earlier forecast because financial results of former SGL GE Holding GmbH (currently SHOWA DENKO CARBON Holding GmbH) is to be consolidated, starting from the fourth quarter, 2017 due to the business integration. Net sales in the Petrochemicals segment will exceed the earlier forecast because market prices of petrochemical products have been hovering above the earlier forecast due to a rise in raw naphtha price.
Operating income in the Petrochemicals segment is expected to exceed the earlier forecast because the spreads of products have been hovering above the earlier forecast, reflecting the tight supply-demand situation in the Asian market. Operating income in the Inorganics segment is also expected to exceed the earlier forecast because operating income of our subsidiary in China is expected to be higher than the earlier forecast due to a rise in prices of graphite electrodes in the Chinese market.
Ordinary income will be higher than the earlier forecast due to the increase in operating income.
The forecast of net income attributable to owners of the parent remains the same as that in the earlier forecast because it takes time to scrutinize the effect of the business integration between SDK and former SGL GE Holding GmbH (currently SHOWA DENKO CARBON Holding GmbH), which SDK acquired on October 2, 2017.
Press release (PDF): www.sdk.co.jp/assets/files/english/news/2017/20171212_newsrelease1_e.pdf