MOSCOW (MRC) -- Sumitomo Chemical reports a steep increase in net profit to Yen 133.6 billion (USD1.1 billion) in the fiscal first nine months ended 31 December, from Yen 20.2 billion a year earlier, on sales up 24% to Yen 2.0 trillion, as per the company's press release.
Operating income was Yen 197.9 billion, higher by 71% year on year (YOY).
Sales at Sumitomo's petrochemicals and plastics business segment, the company's largest, rose by 53% YOY to Yen624.9 billion. The unit swung to an operating profit of Yen 51.9 billion from an operating loss of Yen 27.8 billion a year earlier. The company adds that market prices for petchem products, synthetic resins, and synthetic fibers increased owing to demand recovery and a rise in raw material costs. Margins also improved.
At the energy and functional materials segment, operating income grew 19.5% YOY, to Yen 18.6 billion and sales rose 29.2%, to Yen 226.6 billion. Shipments of separators for lithium-ion secondary batteries performed well. Market prices for aluminum and for the metal raw materials for cathode materials increased, resulting in higher selling prices.
The company has not published a forecast for the full fiscal year ending 31 March 2022.
As MRC reported earlier, Sumitomo Chemical is building additional production lines for its liquid crystal polymer (LCP) super engineering plastic at the company's site in Ehime. This expansion will increase the group’s production capacity of LCP by around 30%. The new production lines are scheduled to be completed in the summer of 2023. LCP has been used for a broad range of applications, including electronic components for PCs and smartphones.
We remind, Sumitomo Chemical will establish a subsidiary, Sumika Polymer Compounds Poland (SPCP), to build and operate a polypropylene (PP) compounding facility at PoznaA, Poland. The capacity of the planned PP compounding plant will be 30,000 metric tons/year. It is due to commence operations in 2022.
Sumitomo Chemical, a leading Japanese chemical company, was founded with a mission to drive societal impact and solve environmental challenges through technology. They have been exploring new opportunities to achieve carbon neutrality by 2050.
MRC