PUBLISHED ONFebruary 14, 2018 8:30 AM
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)
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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)
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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
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[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]
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Dividends per share (y)
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Record date May 11, 2017 End of 2Q End of the term Yearly total
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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
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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/.
Contact:
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