Showa Denko has announced an operating increase of nearly a quarter for the first six months of the year, but says the forecast is ‘severe’.
The company, which manufacturers and markets chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries, says its ordinary income rose 44.5 per cent to JPY 23,446 million. Net income was up 22.7 per cent to JPY 20,866 million.
The company says in the chemical and nonferrous metals industries, costs of naphtha, aluminium ingot, and other raw materials remained at high levels, but demand for chemical products increased, helped by steady exports to China and other Asian countries. In the electronic parts/materials industry, the situation remained severe due to prolonged inventory adjustments that had started in the latter half of 2004.
Production of ethylene and propylene increased slightly over the same period last year helping the petrochemicals segment’s sales rose 21.6 per cent to JPY 142,611 million. Operating income rose by 49.6 per cent to JPY 11,408 million.
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