Sumitomo Chemical Company, Ltd. Announces Consolidated Financial Results.Tokyo Tokyo (tō`kēō), city (1990 pop. 8,163,573), capital of Japan and of Tokyo prefecture, E central Honshu, at the head of Tokyo Bay. , Japan, May 10, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Sumitomo Chemical Company, Limited (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 4005) today announced that its consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the year ended March 31, 2007 (FY 2006) totaled JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 1,790.0 billion ($15,163 million), an increase of 15.0% over FY 2005. The Company posted operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of JPY 139.6 billion ($1,183 million) and net income of JPY 93.9 billion ($795 million). Each of these results is a record high for the Company. The Company decided to pay year-end dividends Year-end dividend A special dividend declared at the end of a fiscal year that usually represents distribution of higher-than-expected company profits. year-end dividend See final dividend. of JPY 7 per share, thereby raising the annual dividend from JPY 10 per share for FY2005 to JPY 12 for FY2006. Sales in the Basic Chemicals segment increased by JPY 61.6 billion over last year to JPY 314.0 billion. The increase was due to a substantial increase in sales of aluminum because of a rise in the market price compared with last year. Also production capacity expansions for both methyl methacrylate methyl methacrylate (meth´il methak´rilāt), n an acrylic resin, CH2 = C(CH3)COOCH3, derived from methyl acrylic acid. Monomer is the single molecule and polymer is the polymerization product. (MMA (Microcomputer Managers Association, Inc.) A membership organization with chapters throughout the U.S. that was devoted to educating personnel responsible for personal computers. It disbanded in 1996. Mma - A fast Mathematica-like system, in Allegro CL by R. Fateman, 1991. ) and caprolactam Caprolactam is an organic compound which is a cyclic amide (or lactam). The primary industrial use of caprolactam is as a monomer in the production of nylon. Most of the caprolactam is synthesised from cyclohexanoxime by a Beckmann rearrangement. , the raw material for synthetic fibers Noun 1. synthetic fiber - fiber created from natural materials or by chemical processes man-made fiber fiber, fibre - a slender and greatly elongated substance capable of being spun into yarn acrylic, acrylic fiber - polymerized from acrylonitrile , contributed to the sales growth. The Petrochemicals & Plastics segment saw sales rise by JPY 53.0 billion over last year to JPY 539.1 billion. Sales of styrene sty·rene n. A colorless oily liquid from which polystyrenes, plastics, and synthetic rubber are produced. Also called vinylbenzene. monomer monomer (mŏn`əmər): see polymer. monomer Molecule of any of a class of mostly organic compounds that can react with other molecules of the same or other compounds to form very large molecules (polymers). and other petrochemicals increased on the back of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions that supported price increases taken in response to the rising prices of feedstocks such as naphtha naphtha (năp`thə, năf`–), term usually restricted to a class of colorless, volatile, flammable liquid hydrocarbon mixtures. . Firm sales of synthetic resins Noun 1. synthetic resin - a resin having a polymeric structure; especially a resin in the raw state; used chiefly in plastics acrylate resin, acrylic resin, acrylic - a glassy thermoplastic; can be cast and molded or used in coatings and adhesives also contributed to the segment's improved year-on-year performance. Sales in the Fine Chemicals segment increased by JPY 11.9 billion year on year to JPY 90.9 billion. The increase was due to favorable sales of adhesives raw materials driven by firm demand as well as increased sales of pharmaceutical chemicals thanks to an increase in shipments of pharmaceutical intermediates. Although sales prices for optical materials Optical materials All substances used in the construction of devices or instruments whose function is to alter or control electromagnetic radiation in the ultraviolet, visible, or infrared spectral regions. fell, total sales in the IT-related Chemicals segment increased by JPY 37.2 billion over last year to JPY 266.4 billion as a result of capacity expansions in Korea etc, for polarizing films, a primary material for liquid crystal displays liquid crystal display (LCD) Optoelectronic device used in displays for watches, calculators, notebook computers, and other electronic devices. Current passed through specific portions of the liquid crystal solution causes the crystals to align, blocking the passage of light. . Sales in the Agricultural Chemicals segment increased by JPY 12.1 billion over last year to JPY 198.3 billion. Feed additives and household insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides saw increases in overseas sales owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de active marketing drives. Production capacity expansion contributed to an increase in OLYSET(R) NET shipments. Sales of agrochemicals declined because of weak demand in the Japanese market, while overseas sales of herbicides remained firm thanks to solid shipments. Sales in the Pharmaceuticals segment increased by JPY 1.4 billion over the previous year to JPY 234.5 billion. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite NHI NHI abbr. National Health Insurance drug price reduction in April of last year, sales of Dainippon Sumitomo Pharma Co., Ltd. (DSP (1) (Digital Signal Processor) A special-purpose CPU used for digital signal processing applications (see definition #2 below). It provides ultra-fast instruction sequences, such as shift and add, and multiply and add, which are commonly used in math-intensive )'s four main products, Amlodin (therapeutic agent for hypertension hypertension or high blood pressure, elevated blood pressure resulting from an increase in the amount of blood pumped by the heart or from increased resistance to the flow of blood through the small arterial blood vessels (arterioles). and angina Angina Definition Angina is pain, "discomfort," or pressure localized in the chest that is caused by an insufficient supply of blood (ischemia) to the heart muscle. ), Gasmotin (gastroprokinetic), Meropen (carbapenem antibiotic antibiotic, any of a variety of substances, usually obtained from microorganisms, that inhibit the growth of or destroy certain other microorganisms. Types of Antibiotics ), and Prorenal (vasodilator vasodilator /vaso·di·la·tor/ (-di-la´ter) 1. causing dilatation of blood vessels. 2. a nerve or agent that does this. va·so·di·la·tor n. ) remained firm. Total operating income increased by JPY 18.8 billion to JPY 139.6 billion. Operating income in the Basic Chemicals segment increased by JPY 3.5 billion year on year to JPY 13.5 billion, and in the Petrochemicals & Plastics segment it increased by JPY 5.7 billion year on year to JPY 23.6 billion. Operating income in the Fine Chemicals segment increased by JPY 3.3 billion to JPY 13.1 billion, while in the IT-related Chemicals segment, it declined year on year by JPY 18.2 billion to JPY 3.5 billion because of decreasing selling prices as well as increases in depreciation and various fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). . In the Agricultural Chemicals segment, operating income increased by JPY 6.7 billion to JPY 23.3 billion, and in the Pharmaceuticals segment it increased by JPY 17.9 billion to JPY 56.2 billion. The merger of the Company's pharmaceutical subsidiary, Sumitomo Pharmaceuticals Co., Ltd., with Dainippon Pharmaceutical Co., Ltd. in October 2005 to form DSP increased the scale of the Pharmaceuticals segment's operations. Net income also increased over the previous year by 3.5% to JPY 93.9 billion, due mainly to an extraordinary gain on sale of investment securities, including shares of GlaxoSmithKline K.K., in addition to the growth in operating income. Net cash provided by operating activities was JPY 142.9 billion ($1,211 million), and net cash used for investing activities totaled JPY 164.2 billion ($1,391 million), involving expenditures in the IT-related Chemicals segment, the Rabigh project in Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. and other areas.
Free cash flow improved by JPY 36.6 billion from a year before to
negative JPY 21.3 billion ($181 million), as a result of an increase in
net cash provided by operating activities.
For FY 2007, consolidated sales of JPY 1,910 billion ($16,180 million) are projected, an increase of 6.7% over FY2006. Operating income is anticipated to be JPY 130 billion ($1,101 million), a 6.9% decrease due to scheduled maintenance shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down in our petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. plants, among other reasons. And as we expect no extraordinary profit from gain on sales of securities, net income is anticipated to be JPY 70 billion ($593 million), a decrease of 25.4%. The estimated dividend for FY2007 is JPY 12 per share staying at the same level as FY 2006 Dividend. *U.S. dollar amounts are translated from yen, for convenience only, at the rate of JPY 118.05 = $1 prevailing on March 31, 2007. I. Consolidated Statements of Income Years ended March 31, 2007(FY2006) and 2006(FY2005)
-----------------------------------------------------------------------
FY2006 FY2006 FY2005
(Yen mil) (US$1,000) (Yen mil)
-----------------------------------------------------------------------
Sales 1,790,026 15,163,287 1,556,606
Cost of sales 1,338,142 11,335,383 1,138,536
Selling, general
and administrative expenses 312,261 2,645,159 297,280
Operating income 139,623 1,182,745 120,790
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Other income (expenses):
Interest and dividend income 7,137 60,457 5,698
Interest expense (11,034) (93,469) (7,917)
Equity in earnings of affiliates 23,607 199,975 26,815
Gain on sale of securities 31,079 263,270 8,276
Restructuring charges (6,378) (54,028) (5,853)
Expenses related to litigation (1,010) (8,556) -
Loss on reform of
retirement benefits plan (611) (5,176)
Gain on change in interests
in consolidated subsidiary - - 14,273
Gain on business transfer - - 4,516
Gain on sale of
property, plant and equipment - - 2,368
Expenses for subsidiary merger - - (6,116)
Other, net (1,352) (11,453) (4,259)
-----------------------------------------------------------------------
Income before income taxes
and minority interests 181,061 1,533,765 158,591
Income taxes, net of tax effect 65,916 558,374 51,525
Minority interests 21,285 180,305 16,401
Net income 93,860 795,087 90,665
-----------------------------------------------------------------------
FY2006 FY2006 FY2005
(Yen) (US$1) (Yen)
-----------------------------------------------------------------------
Net income per share 56.82 0.48 54.80
Dividends per share:
Interim dividends 5.00 0.04 4.00
Year-end dividends 7.00 0.06 6.00
For the year 12.00 0.10 10.00
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(Note)
*U.S. dollar amounts are translated from yen, for convenience only,
at the rate of JPY 118.05 = $1 prevailing on March 31, 2007.
II. Results of Operations by Industry Segment, Years ended March 31, 2007(FY2006) and 2006(FY2005)
(Yen million)
------------------------------------------------------------------------
FY2006 FY2005
Net Operating Net Operating
Sales Income Sales Income
------------------------------------------------------------------------
Basic Chemicals 314,004 13,483 252,399 9,994
Petrochemicals & Plastics 539,065 23,596 486,054 17,918
Fine Chemicals 90,882 13,085 79,011 9,826
IT-related Chemicals 266,436 3,457 229,240 21,704
Agricultural Chemicals 198,310 23,251 186,232 16,578
Pharmaceuticals 234,546 56,231 233,101 38,286
Others 146,783 8,012 90,569 5,762
Elimination (1,492) (-722)
--------- --------- --------- ---------
Total 1,790,026 139,623 1,556,606 120,790
------------------------------------------------------------------------
*U.S. dollar amounts are translated from yen, for convenience only,
at the rate of JPY119.11=$1 prevailing on December 31, 2006.
III. Consolidated Statements of Cash Flows Years ended March 31, 2007(FY2006) and 2006(FY2005) <PRE> ----------------------------------------------------------------------- FY2006 FY2006 FY2005 (Yen mil An Internet address domain name for a military agency. See Internet address. (networking) mil - The top-level domain for entities affiliated with US armed forces. ) (US$1,000) (Yen mil) ----------------------------------------------------------------------- Cash flows from operating activities ----------------------------------------------------------------------- Income before income taxes and minority interests 181,061 1,533,765 158,591 Depreciation and amortization 113,870 964,591 104,906 Income taxes paid (39,367) (333,477) (50,296) Other, net (112,647) (954,231) (90,418) Net cash provided by operating activities 142,917 1,210,648 122,783 ----------------------------------------------------------------------- Cash flows from investing activities ----------------------------------------------------------------------- Acquisition of securities (10,188) (86,302) (30,384) Acquisition of investments (33,212) (281,338) (41,983) Acquisition of property, plant and equipment (156,924) (1,329,301) (121,601) Other, net 36,085 305,675 13,289 Net cash used in investing activities (164,239) (1,391,266) (180,679) ----------------------------------------------------------------------- Cash flows from financing activities ----------------------------------------------------------------------- Dividends paid (18,182) (154,019) (14,880) Net increase in short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. 31,108 263,515 38,184 Net increase in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 29,983 253,986 57,831 Other, net (7,351) (62,271) (10,554) Net cash provided by (used in) financing activities 35,558 301,211 70,581 ----------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents 781 6,616 1,002 ----------------------------------------------------------------------- Net increase in cash and cash equivalents 15,017 127,209 13,687 ----------------------------------------------------------------------- Increase in cash due to merger of consolidated subsidiaries - - 42,121 Net increase (Decrease) in cash resulting from changes in the number of consolidated subsidiaries 1 9 (78) Cash and cash equivalents at beginning of year 110,972 940,042 55,242 ----------------------------------------------------------------------- Cash and cash equivalents at end of year 125,990 1,067,260 110,972 ----------------------------------------------------------------------- (Note) *U.S. dollar amounts are translated from yen, for convenience only, at the rate of JPY118.05=$1 prevailing on March 31, 2007. </PRE> IV. Non-consolidated Statements of Income Years ended March 31, 2007(FY2006) and 2006(FY2005) <PRE> ----------------------------------------------------------------------- FY2006 FY2006 FY2005 (Yen mil) (US$1,000) (Yen mil) ----------------------------------------------------------------------- Sales 885,557 7,501,542 755,037 Cost of sales 738,224 6,253,486 623,916 Selling, general and administrative expenses 101,405 859,000 100,325 ----------------------------------------------------------------------- Operating income 45,928 389,055 30,795 Other income 38,509 326,209 43,896 Other expenses 13,841 117,247 12,532 ----------------------------------------------------------------------- Ordinary income 70,595 598,009 62,159 Special gains 43,301 366,802 7,980 Special losses 2,197 18,611 3,737 ----------------------------------------------------------------------- Income before income taxes 111,699 946,201 66,402 Income taxes 27,988 237,086 15,446 ----------------------------------------------------------------------- Net income 83,711 709,115 50,956 ----------------------------------------------------------------------- *U.S. dollar amounts are translated from yen, for convenience only, at the rate of JPY 118.05 = $1 prevailing on March 31, 2007. </PRE> * Statements made in this release with respect to the Company's current plans, estimates, strategies and beliefs that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the future performance of Sumitomo Chemical. These statements are based on management's assumptions and beliefs in light of the information currently available to it, and involve risks and uncertainties. The important factors that could cause actual results to differ materially from those discussed in the forward-looking statements include, but are not limited to, general economic conditions in Sumitomo Chemical's markets; demand for, and competitive pricing pressure on, Sumitomo Chemical's products in the marketplace; Sumitomo Chemical's ability to continue to win acceptance for its products in these highly competitive markets; and movements of currency exchange rates. About Sumitomo Chemical Co. Limited Sumitomo Chemical (TSE:4005) is one of Japan's leading chemical companies, offering a diverse range of products in the fields of basic chemicals, petrochemicals, fine chemicals, IT-related chemicals, agricultural chemicals, and pharmaceuticals. While expanding business worldwide and aggressively pursuing cutting-edge R&D, we continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. strive to contribute to the sustainable development Sustainable development is a socio-ecological process characterized by the fulfilment of human needs while maintaining the quality of the natural environment indefinitely. The linkage between environment and development was globally recognized in 1980, when the International Union of society through our Responsible Care activities. For more informaion, please visit www.sumitomo-chem.co.jp. Source: Sumitomo Chemical Co. Limited Contact: Sumitomo Chemical Co., Ltd. Corporate Communications Dept. Tel: +81-3-5543-5500 Fax: +81-3-5543-5901 Japan Corporate News Network. All rights reserved. |
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