Japan’s Sumitomo Chemical trims fiscal H1 net loss as sales grow 5%

SINGAPORE (ICIS)–Sumitomo Chemical trimmed its fiscal first-half net loss to Japanese yen (Y) 6.5 billion, aided by about a 5% growth in sales, the Japan-based producer said on Wednesday.

in billion yen (Y)	Apr-Sept 2024	Apr-Sept 2023	% change	Yr-to-March 2025 (revised forecast)	Yr-to-March 2024 (actual)
Sales revenue	1,241.4	1,186.9	4.6	2,600.0	2,446.9
Core operating profit	29.5	-96.7	–	100.0	-149.0
Operating income	121.2	-133.7	–	180.0	-488.8
Net income	-6.5	-76.3	–	-25.0	-311.8

Revenues for the period increased on higher selling prices of synthetic resins, methyl methacrylate (MMA) and various industrial chemicals increased due to higher raw material prices, the company said in a statement.

Its essential chemicals & plastics segment posted a lower core operating loss of Y36.7 billion, with sales up by 3.3% year on year to Y403 billion, it said.

However, it noted that earnings were weighed down by a deterioration of financial performance by its 37.5%-owned affiliate Saudi Arabia’s Rabigh Refining and Petrochemical Co.

Meanwhile, IT-related chemicals posted a 10% increase in sales to Y224.3 billion, with core operating income more than doubling to Y37.5 billion, on the back of strong demand for display-related materials and processing materials for semiconductors, it said.

For the whole of fiscal year ending March 2025, Sumitomo Chemical lowered its sales forecast by Y70 billion to Y2.6 trillion, but raised its net profit forecast by Y5 billion to Y25 billion.

The forecasts mark a return to profitability for Sumitomo Chemicals, which had incurred a Y312 billion net loss in the previous fiscal year.

($1 = Y153.3)