Showa Denko Revises Forecast of Consolidated Performance

Aug 03, 2022 15:00 JST

Source: Showa Denko K.K.

TOKYO, Aug 03, 2022 - (ACN Newswire) - Showa Denko (SDK) (TOKYO: 4004) announces that, taking the Company's recent performance into account, it revises its forecast of consolidated business results for the first half of the year ending on December 31, 2022 and that for the full year ending on December 31, 2022, both of which were announced on February 13, 2022.

1. Revision of forecast of consolidated business results for January 1 - June 30, 2022
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2. Revision of forecast of consolidated business results for January 1 - December 31, 2022
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Reasons for the revision

In the first half of 2022, Semiconductor and Electronic Materials segment showed good performance. Net sales in that period are expected to be in slight excess of the previous forecast, which was announced on February 14, 2022, due partly to a weak yen and a rise in prices of products, despite a decrease in sales volumes. Operating income is expected to exceed the previous forecast by about 7.7 billion yen due partly to a weak yen and a rise in prices of products, despite a rise in prices of raw materials, a rise in the cost of energy including electricity rates, and a rise in the cost of transportation. Ordinary income is expected to exceed the previous forecast by about 19.3 billion yen due partly to the recording of valuation profit concerning the Group's assets booked in foreign currencies caused by rapid depreciation of yen, and an improvement in the balance of financial account. Net income attributable to owners of the parent is also expected to exceed the previous forecast by about 25 billion yen due partly to the increase in ordinary income, and change in the period to record an extraordinary loss which is expected to be accrued as the cost of structural reform from the first half of 2022 into the second half of 2022.

With regard to the Company's full-year performance forecast for 2022, net sales are expected to exceed the previous forecast due partly to a weak yen and a rise in prices of products. However, we leave the forecast of operating income for 2022 as it is in the previous forecast, which we announced on February 14, 2022, due partly to a rise in prices of raw materials, a rise in the cost of energy, and a rise in the cost of transportation. We expect that ordinary income for 2022 will exceed the previous forecast due partly to our recording of valuation profit concerning the Group's assets booked in foreign currencies and an improvement in the balance of financial account. Net income attributable to owners of the parent is also expected to exceed the previous forecast.

Performance forecast and other statements pertaining to the future as contained in this document are based on the information available as of today and assumptions as of today regarding risk factors that could affect our future performance. Actual results may differ materially from the forecast due to a variety of risk factors, including, but not limited to, the influence of the coronavirus disease 2019 (COVID-19) on the world economy, the international situation, costs of naphtha and other raw materials, demand or market conditions for our products such as graphite electrodes and other commodities, and foreign exchange rates. We undertake no obligation to update the forward-looking statements unless required by law.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Media contact:
Showa Denko K.K., IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323

Source: Showa Denko K.K.
Sectors: Chemicals, Spec.Chem