Sumitomo Chemical Reports Interim Consolidated Financial Results.Tokyo, Japan, Nov 10, 2006 - (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) has 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 six months ended September 30, 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. 854.6 billion ($7,249 million), an increase of 24.1% over the first half of FY2005. Interim net income increased 35.4% to JPY 53.3 billion ($452 million). Each of these interim results is a record high for the Company. Sales in the Basic Chemicals segment increased by JPY 32.6 billion over the same period last year to JPY 149.5 billion. The increase was due to a substantial increase in sales of aluminum on the back of improved market conditions as well as increased sales of 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 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. , and 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. ) because of production capacity expansions. The Petrochemicals & Plastics segment saw a sales rise by JPY 30.7 billion over the same period last year to JPY 260.4 billion, bolstered by firm sales of synthetic resins both in Japan and overseas. 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). , propylene oxide propylene oxide a gas used to disinfect animal feeds. , 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 also 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. . Sales in the Fine Chemicals segment increased by JPY 9.9 billion year on year to JPY 47.1 billion. The increases were 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 new pharmaceutical intermediates. Sales in the IT-related Chemicals segment increased by JPY 28.5 billion over the same period last year to JPY 128.7 billion as a result of capacity expansions in Korea and Taiwan for polarizing film, 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 4.9 billion over the same period last year to JPY 95.3 billion. Feed additives saw an increase in 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 increases in selling prices reflecting a sharp rise in the price of raw materials, and 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 28.0 billion over the previous year to JPY 114.5 billion. The Company's pharmaceutical subsidiary, Sumitomo Pharmaceuticals Co., Ltd., merged with Dainippon Pharmaceutical Co., Ltd. in October 2005 to form 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 ), increasing the scale of the segment's operations, and sales of DSP's four main products, Amlodin (therapeutic agent for hypertension 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. Total 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. increased by JPY 11.6 billion to JPY 68.2 billion. Operating income in the Basic Chemicals segment remained flat at JPY 5.9 billion, while in the Petrochemicals & Plastics segment it decreased by JPY 1.4 billion year on year to JPY 7.4 billion, both segments showing the effect of rising prices for raw materials. Operating income in the Fine Chemicals segment increased JPY 2.6 billion to JPY 7.3 billion thanks to favorable sales, but In the IT-related Chemicals segment, it declined year on year by JPY 2.5 billion to JPY 6.3 billion because of decreasing selling prices. In the Agricultural Chemicals segment, operating income increased by JPY 3.9 billion to JPY 12.2 billion, and in the Pharmaceuticals segment it increased by JPY 2.0 billion to JPY 3.4 billion. Net income increased by JPY 13.9 billion to JPY 53.3 billion due mainly to an extraordinary gain on sale of investment securities, including shares of GlaxoSmithKline K.K., in addition to the growth of operating income. The Company plans to pay an interim dividend of JPY 5,000 per 1,000 shares. I) Interim Consolidated Statements of Income Six Months ended September 30, 2006 and 2005
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FY2006 FY2005
(JPY Million) (US$1,000)* (JPY Million)
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Sales 854,621 7,248,694 688,432
Cost of sales 633,337 5,371,815 502,400
Selling, general admin.expenses 153,070 1,298,304 129,407
Operating income 68,214 578,575 56,625
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Other income (expenses):
Interest and dividend income 3,738 31,705 3,250
Interest expense (5,156) (43,732) (3,650)
Equity in earnings of
affiliates 8,157 69,186 14,932
Gain on sale of
investment securities 23,055 195,547 1,893
Restructuring charges (3,651) (30,967) (3,257)
Loss on reform of
retirement benefits plan (611) (5,182) -
Gain on business transfer - - 4,516
Expenses for subsidiary merger - - (2,429)
Other, net 967 8,201 878
Income before income taxes
and minority interests 94,713 803,333 72,758
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Income taxes, net of tax effect 32,872 278,813 27,167
Minority interests 8,558 72,587 6,241
Net income 53,283 451,934 39,350
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FY2006 FY2005
(Yen) (US dollar)* (Yen)
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Net income per 1,000 shares (yen) 32,256 $273.59 23,809
Dividends per 1,000 shares (yen)
Interim dividends 5,000 $42.41 4,000
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Interim net cash provided by operating activities was JPY 57.0 billion ($483 million), while net cash used in investing activities was JPY 57.2 billion ($485 million). Interim free cash flow was improved to negative JPY 0.2 billion ($2 million), compared with negative JPY 24.6 billion for the comparable period in FY 2005. II. Consolidated Statements of Cash Flows Six Months ended September 30, 2006 and 2005
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FY2006 FY2005
(JPY Million) (US$1,000)* (JPY Million)
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Net Cash provided by
Operating Activities 56,956 483,087 52,067
Net Cash used in
Investing Activities (57,192) (485,089) (76,625)
Net Cash provided by
Financing Activities 7,353 62,366 48,264
Cash and Cash Equivalents
at Beginning of Period 110,972 941,238 55,242
Net increase (decrease)
in cash resulting from
changes in the number of
consolidated subsidiaries (102) (865) (41)
Cash and Cash Equivalents
at End of Period 117,954 1,000,458 79,708
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For the fiscal year ending March 31, 2007, the Company estimates that consolidated net sales will be 1,785 billion ($15,140 million), a 14.7% increase from FY2005, and that consolidated net income will be JPY 91 billion ($772 million), a slight decrease from last year. * U.S. dollar amounts are translated from yen, for convenience only, at the rate of JPY 117.90= $1 prevailing on September 30, 2006. For more information and supporting materials, please visit the Sumitomo Chemical IR website at http://www.sumitomo-chem.co.jp/english/index.html . (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 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 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 Copyright [c] 2006 JCN Newswire. All rights reserved. A division of Japan Corporate News Network K.K. |
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