Among the winners, electronic materials and plastics maker Shin-Etsu said its debut in February of a new generation of 300-mm silicon wafers boosted profits 10% in an otherwise difficult environment. The company also gave credit to the launch of a 300,000-metric-ton-per-year PVC plant in Louisiana. HSBC Securities chemical analyst Masami Sawato calls Shin-Etsu an "exceptional case with a well-balanced business portfolio."

JSR Corp. credited its optical fiber curing materials and its expanding line of process chemicals for the electronics industry for a 10% boost in its bottom line. The company is diversifying away from its traditional synthetic rubber business.

Sumitomo Chemical posted a 21% improvement, but it was due to a nonrecurring gain from the sale of securities. Sales of basic chemicals were down, and the company experienced an operating loss in that segment. Operating income overall was down 26% from a year earlier. Only the agricultural chemicals and pharmaceutical segments turned in a positive performance.

Among the downsiders, Mitsui Chemicals and Mitsubishi Chemical blamed poor margins in the petrochemical business for sharp declines in profit. Mitsubishi, which had profits of $4.3 million in first-half 2000, posted a loss of $71 million this half.

Asahi Kasei's net income, down 75% from a year ago, was hurt by deteriorating conditions in most of its businesses. Originally focused on synthetic fibers, the company has in recent years diversified into construction materials.

For the second half, Sawato says, some companies still appear to be making unrealistically optimistic profit forecasts. For the rest, though, the decline in the price of feedstock naphtha will help them achieve their toned-down profit projections.

So-So Some firms eked out first-half gains
	SALES		NET EARNINGS
	2001	CHANGE	2001	CHANGE
	($ MILLIONS)	FROM 2000	($ MILLIONS)	FROM 2000
Asahi Kasei	$4,919	-2%	$25	-75%
JSR	898	-3	20	10
Mitsubishi	6,836	0	-71	nm
Mitsui	3,980	6	23	-63
Shin-Etsu	3,247	0	284	10
Sumitomo	4,099	-1	137	21
Teijin	3,739	24	59	-13
Toray	4,249	2	10	-84
NOTE: Fiscal year begins April 1. Calculated on the basis of U.S. $1.00 = 122 yen. nm = not meaningful. SOURCE: Company data

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