News Article
Showa Denko (SDK) net sales up 55.1% for 1st Quarter
Showa Denko has announced financial results for the first quarter ended March 31, 2010.
The Company recorded net sales of JPY 187,694 million in the first quarter of 2010, up 55.1% from the same period of the previous year. The Company posted an operating income of JPY 7,028 million (up JPY 22,697 million), an ordinary income of JPY 5,104 million (up JPY 28,735 million), and a net income of JPY 3,493 million (up JPY 25,574 million).
1. Net sales and operating income by segment (January 1 - March 31, 2010)
Petrochemicals segment
The Petrochemicals segment's sales increased 59.8%, to JPY 64,177 million. While we had shutdown maintenance of our ethylene plant from the middle of March to the end of April (the shutdown maintenance is conducted once in every four years), shipment volumes of olefins in the quarter were maintained at the level of the same period of last year due to recovery in demand. Sales of olefins increased due to higher selling prices, reflecting the rise in raw material costs. Sales of organic chemicals increased due to the rise in shipment volumes of vinyl acetate and other products. The segment recorded an operating income of JPY 1,034 million, up JPY 1,558 million.
Chemicals segment
The Chemicals segment's sales increased 10.1%, to JPY 21,798 million. Sales of acrylonitrile were up due to increases in selling prices, reflecting the rise in raw material costs, and shipment volumes. Sales of ammonia and chloroprene rubber increased due to higher shipment volumes. The segment recorded an operating income of JPY 1,119 million (up JPY 1,965 million).
Electronics segment
The Electronics segment's sales jumped 167.9%, to JPY 42,588 million. Sales of hard disk (HD) media increased due to substantial increases in shipment volumes, reflecting brisk demand. Sales of compound semiconductors, specialty gases for semiconductor processing, and rare earth magnetic alloys increased due to higher shipment volumes, reflecting the recovery in production in the electronics industry. The segment recorded an operating income of JPY 2,527 million (up JPY 11,864 million).
Inorganics segment
The Inorganics segment's sales rose 66.1%, to JPY 17,365 million. Sales of ceramics and graphite electrodes increased due to the rise in shipment volumes. Operating income jumped 152.0%, to JPY 1,115 million.
Aluminum segment
The Aluminum segment's sales rose 20.3%, to JPY 41,766 million. Sales of rolled products were up due to substantial increases in shipment volumes, and the rise in selling prices, of high-purity foils for capacitors. Sales of extrusions decreased due to our withdrawal from the commodity extrusions business for building materials in the second half of 2009.
Meanwhile, sales of aluminum cylinders for laser beam printers increased due to higher shipment volumes. As a result, overall sales from the extrusions/specialty products business were maintained at the level of the same period last year. Sales of heat exchangers and Shotic forged products increased, reflecting the rise in shipment volumes for automotive applications. Sales of aluminum cans rose due to increases in shipment volumes. The segment recorded an operating income of JPY 1,826 million (up JPY 6,285 million).
