Latest News
-
November 21, 2005 - Volume 83, Number 47
- p. 9
Earnings
Japanese Firms Keep Improving
Most companies achieve strong operational performance during first half
Jean-François Tremblay
First-half profits for the fiscal year that will end March 31, 2006, improved at most large Japanese chemical companies; they enjoyed strong demand from Japan and the rest of Asia and performed fewer balance-sheet adjustments.
Mitsubishi Chemical and Mitsui Chemicals sharply improved their net profit compared with a year ago. Net earnings nearly doubled at Mitsubishi, and Mitsui turned a loss into a $152 million gain. Last year, the two performed costly downward revaluations of some of their assets to comply with new accounting standards.
Sumitomo Chemical achieved its highest first-half profit ever. Sales increased in all business segments except fine chemicals, where the company encountered “intensifying competition.” Sumitomo recorded a gain from the divestment of subsidiaries and improved margins in basic chemicals, petrochemicals, and agrochemicals. New facilities for electronic chemicals also came on-line.
Dainippon Ink & Chemicals declared a $32 million net loss despite improving its operating income by 3.7%. The loss was caused by writing off the value of its former U.S. subsidiary Reichhold, which it had bought for $540 million in 1987 and sold for a dollar earlier this fall.
Fiber and plastics makers Teijin and Toray both declared lower net earnings despite achieving higher sales and operating earnings. Unlike a year ago, Teijin did not post a large exceptional gain on the sale of securities. Toray recorded special losses on its provisions for retirement benefits and on the scrapping of facilities.
Shin-Etsu boosted its net by nearly 20%. Unlike most other companies, where profits fluctuated because of special items, Shin-Etsu simply increased sales and margins in all of its major business segments.
 |
- Chemical & Engineering News
- ISSN 0009-2347
- Copyright © 2006 American Chemical Society
