Sumitomo Chemical Reports Consolidated Financial Results for the Three Months Ended June 30, 2007.Tokyo, Japan, July 31, 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), a leading diversified chemical producer, has announced results for the first quarter ended March 31, 2007. The Group posted first-quarter sales of 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. 439.2 billion, an increase of JPY 26.9 billion over the same period the previous year. 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. was JPY 25.6 billion, ordinary income was JPY 34.4 billion, and net income was JPY 14.8 billion, all of which represent a decrease compared with the previous year 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 increased raw materials costs as well as increased 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). and other factors. The financial projections for fiscal 2007 announced on May 10, 2007 remain unchanged. Sales in the Basic Chemicals segment increased thanks to improved market conditions both for aluminum and raw materials for synthetic textile fibers synthetic textile fibers have revolutionized the textile industry. Such artificial fibers are usually long-chain polymers, produced industrially by the condensation of many small units. such as 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. . Sales of 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. also saw a rise because of higher selling prices in Asia. As a result, sales increased JPY 7.3 billion over the previous year to JPY 77.2 billion and operating income increased JPY 1.6 billion to JPY 4.3 billion. In the Petrochemicals & Plastics segment, 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 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. products increased on the back of 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. . Sales of synthetic resins also increased thanks to higher selling prices in Asia. Sales increased JPY 18.7 billion over the same period last year to JPY 143.9 billion, while operating income decreased by JPY 1.3 billion to JPY 2.3 billion reflecting the effects of rising prices for raw materials. The Fine Chemicals segment saw sales increases due to marketing drives for active pharmaceutical ingredients and pharmaceutical intermediates. Sales increased JPY 1.0 billion year on year to JPY 23.1 billion, while operating income remained flat at JPY 3.4 billion. In the IT-related Chemicals segment, sales decreased because of decreasing selling prices in spite of increased sales volumes for polarizing film and color filters Color filter An optical element that partially absorbs incident radiation, often called an absorption filter. The absorption is selective with respect to wavelength, or color, limiting the colors that are transmitted by limiting those that are absorbed. , main materials 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. (LCDs), driven by a production capacity increase in Korea. Sales decreased JPY 2.5 billion year on year to JPY 61.3 billion and operating income declined by JPY 7.8 billion to post a loss of JPY 4.1 billion because of decreased selling prices as well as increased fixed costs accompanying capacity expansions and other factors. In the Agricultural Chemicals segment, feed additives saw an increase in sales owing to increases in selling prices and increased shipments thanks to active marketing drives. Firm shipments of agrochemicals and household insecticides insecticides, chemical, biological, or other agents used to destroy insect pests; the term commonly refers to chemical agents only. Chemical Insecticides and a boost from favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign exchange rates thanks to a weak yen resulted in an increase in overall sales. Sales increased JPY 2.4 billion over the same period last year to JPY 47.2 billion and operating income increased by JPY 0.8 billion to JPY 5.4 billion. In the Pharmaceuticals segment, sales of Dainippon Sumitomo Pharma'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. ), 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 ), Gasmotin (gastroprokinetic), 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, while sales of other products along with revenue from licensing of intellectual property rights decreased. Sales decreased JPY 0.4 billion year on year to JPY 58.4 billion, and operating income decreased by JPY 1.3 billion to JPY 13.9 billion. In the Others segment, which includes electrical power and steam supply, chemical plant engineering services, cargo transportation and warehousing services, and a broad range of analytical and environmental research services, sales increased JPY 0.3 billion over the previous year to JPY 28.1 billion, while operating income declined JPY 0.3 billion to JPY 0.4 billion. As a result, net income decreased by JPY 5.6 billion to JPY 14.8 billion mainly owing to the decrease in operating income.
Results of operations
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3 Months ended
June 30, 2007 June 30, 2006
Millions Yen US$ 1,000 Millions Yen
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Net Sales 439,222 3,563,378 412,301
Operating Income 25,634 207,967 33,982
Income Before Income Taxes and
Minority Interests 34,685 281,397 40,159
Net Income 14,776 119,877 20,355
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Net income per 1,000 shares JPY 8,947 US$ 73 JPY 12,322
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Financial position
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As of As of
6/30/2007 3/31/2007
Yen US$ 1,000 Yen
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Total Assets 2,338,640 18,973,227 2,324,906
Total Net Asset 1,037,140 8,414,246 1,030,521
Book Value per 1,000 shares JPY 483,435 US$ 3,922 JPY 479,872
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Cash flows
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3 Months ended
June 30, 2007 June 30, 2006
Millions Yen US$ 1,000 Millions Yen
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Cash flows from
operating activities 19,073 154,738 -
investing activities (62,526) (507,269) -
financing activities 14,784 119,942 -
Cash and cash equivalents
at end of period 97,811 793,534 -
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Results of Operations by Business Segment
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3 Months ended
June 30, 2007 June 30, 2006
Millions Yen US$ 1,000 Millions Yen
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Net Sales
Basic Chemicals 77,248 626,708 69,902
Petrochemicals & Plastics 143,862 1,167,143 125,155
Fine Chemicals 23,105 187,449 22,086
IT-related Chemicals 61,299 497,315 63,844
Agricultural Chemicals 47,166 382,655 44,721
Pharmaceuticals 58,398 473,779 58,786
Others 28,144 228,330 27,807
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439,222 3,563,378 412,301
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Operating Income
Basic Chemicals 4,291 34,813 2,718
Petrochemicals & Plastics 2,317 18,798 3,629
Fine Chemicals 3,354 27,211 3,214
IT-related Chemicals (4,069) (33,012) 3,734
Agricultural Chemicals 5,405 43,850 4,616
Pharmaceuticals 13,940 113,094 15,283
Others 419 3,399 728
Elimination (23) (187) 60
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25,634 207,967 33,982
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(Note)
U.S. dollar amounts are translated from yen, for convenience only,
at the rate of JPY123.26= US$1 prevailing on June 30, 2007.
(Cautionary Statement) 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 managemen'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 Sumitomo Chemical Co. Limited (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 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 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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