Showa Denko (SDK) Announces Difference between Performance Forecast and Results, Posting of Extraordinary Loss, and Revision ...
14 Febbraio 2018 - 9:30AM
JCN Newswire (English)
Showa Denko ("SDK"; TSE:4004) hereby announces occurrence of
difference between its forecast of consolidated financial results
for full-year 2017 announced on December 12, 2017 and actual
financial results announced today. SDK also announces posting of an
extraordinary loss concerning refurbishment of Yokohama Plant. In
addition, SDK resolved at its Board of Directors' meeting held on
February 14, 2018 to revise its forecast of the term-end dividends
to be paid for the term of January 1 - December 31, 2017.
1. Difference between the forecast of consolidated financial
results for January 1 - December 31, 2017 and actual financial
results
[Difference between the forecast and actual results]
(Millions of yen, excepting net income attributable to owners of
the parent per share)
----------------------------------------------------------------------
Net sales Operating Ordinary Net income Net income
income income attributable attributable
to owners of to owners of
the parent the parent
per share (y)
----------------------------------------------------------------------
Previous forecast (A)
(Announced on Dec. 12, 2017)
773,000 70,000 55,000 21,000 147.34
Actual results (B)
(Announced on Feb. 14, 2018)
780,387 77,818 63,962 33,470 234.84
(B)-(A) 7,387 7,818 8,962 12,470
Percentage of changes
1.0% 11.2% 16.3% 59.4%
Reference: Results for January 1 - December 31, 2016
671,159 42,053 38,690 12,305 86.27
----------------------------------------------------------------------
[Reasons for the difference between the forecast and actual
results]
Net sales exceeded the previous forecast due mainly to the
conditions of the market for products of the Petrochemicals segment
stronger than those expected in the previous forecast.
Operating income exceeded the previous forecast. Operating income
of the Petrochemicals segment exceeded the previous forecast
because the spreads between product prices and raw material costs
were wider than those expected in the previous forecast. In the
Inorganics segment, operating income was also higher than the
previous forecast because the operating income earned by our
graphite electrode subsidiary in China was higher than the previous
forecast due to the bullish conditions of the graphite electrode
market in China.
Ordinary income exceeded the previous forecast due to the rise in
operating income.
Net income attributable to owners of the parent exceeded the
previous forecast due to the rise in ordinary income, despite our
posting of an extraordinary loss concerning refurbishment of
Yokohama Plant aiming to make effective use of the Plant.
2. Posting of an extraordinary loss concerning refurbishment of
Yokohama Plant
SDK is now promoting rebuilding of its business in Yokohama Plant,
located in Yokohama City, Kanagawa Prefecture. Under these
circumstances, SDK has decided to remove unused equipment and
relocate some existing facilities. Thus SDK posted an extraordinary
loss of 7.6 billion yen including the costs of these removals and
relocation.
As for the grounds of Yokohama Plant, SDK will strive to
continuously make effective use of them since the Plant is located
in a metropolitan area and has port facilities including piers at
which ships from other countries can land.
3. Revision of dividend forecast
[Revision of dividend forecast]
----------------------------------------------------------------------
Dividends per share (y)
----------------------------------------------------------------------
Record date May 11, 2017 End of 2Q End of the term Yearly total
----------------------------------------------------------------------
Previous forecast 30.00 0.00 30.00 60.00
Revised forecast 30.00 0.00 50.00 80.00
Dividends paid for the term ended on December 31, 2016
0.00 0.00 0.00
----------------------------------------------------------------------
Note1: SDK consolidated every ten shares into one share on July 1,
2016. The dividends per share paid for the term ended on December
31, 2016 is calculated on the basis of the number of shares before
this consolidation. The forecast of the dividends per share for the
term ended on December 31, 2017 is calculated on the basis of the
number of shares after this consolidation.
Note 2: SDK resolved payment of dividends of 30 yen per share based
on the record date of May 11, 2017 at the extraordinary general
meeting of shareholders held on June 27, 2017, and paid them.
[Reasons for the revision of dividend forecast]
SDK resolved at its Board of Directors' meeting held today to
revise its forecast of the term-end dividends to be paid per share
for the term ended on December 31, 2017 from 30 yen per share,
which was in the previous forecast, to 50 yen per share, up 20 yen
per share, taking into consideration the fact that there was an
upturn in our consolidated business performance from the previous
forecast, and our business expansion and financial conditions in
the future.
About Showa Denko K.K.
Showa Denko K.K. ("SDK"; TSE:4004, US:SHWDF) is a major
manufacturer and marketer of chemical products serving a wide range
of fields ranging from heavy industry to the electronic and
computer industries. The Petrochemicals Sector provides cracker
products such as ethylene and propylene, the Chemicals Sector
provides industrial and high-performance gases and chemicals and
high-purity gases and chemicals for the semiconductor industry, and
the Inorganics Sector provides ceramics products such as alumina,
abrasive, refractory and graphite electrodes and fine carbon
products. Today, the Aluminum Sector provides aluminum materials
and high-value-added fabricated aluminum, the Electronics Sector
provides HD media, compound semiconductors such as ultra
high-bright LEDs and rare earth magnetic alloys, and the Advanced
Battery Materials Department (ABM) provides lithium-ion battery
components. For more information, please visit
www.sdk.co.jp/english/.
Source: Showa Denko K.K.
Contact:
IR Office, Finance & Accounting Department
Phone: 81-3-5470-3323
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