OREANDA-NEWS.  The Sumitomo Chemical Group’s sales for the nine months ended December 31, 2014, were ¥1,723.0 billion, an increase of ¥116.7 billion compared with the same period of the previous fiscal year. Operating income came to ¥71.4 billion, almost unchanged from the same period of the previous fiscal year. The Group posted ordinary income of ¥98.7 billion and net income of ¥47.2 billion, both representing year-on-year increases. The Sumitomo Chemical Group’s financial results by business segment for the nine-month period were as follows. Basic Chemicals Sales of methyl methacrylate grew due to an increase in shipments and higher market prices. Sales of aluminum also rose due to higher market prices. However market prices remained low for raw materials for synthetic fibers and shipments of these products decreased. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales increased by ¥25.2 billion from the same period of the previous fiscal year, to ¥230.4 billion. Operating income improved by ¥5.0 billion, to a loss of ¥2.5 billion. Petrochemicals & Plastics Shipments of synthetic resins from overseas subsidiaries increased, while market prices of petrochemical products and synthetic resins remained high. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales grew by ¥43.8 billion from the same period of the previous fiscal year, to ¥615.2 billion, and operating income rose by ¥4.0 billion, to ¥9.5 billion. IT-related Chemicals Shipments of polarizing film used in liquid crystal displays (LCDs) increased due to growth in demand, while selling prices of polarizing film declined. Although selling prices of touchscreen panels declined, shipments grew because of increased production capacity. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales increased by ¥24.7 billion compared with the same period of the previous fiscal year, to ¥298.2 billion.

Operating income decreased by ¥5.4 billion, to ¥23.8 billion, as it was adversely affected by lower selling prices. Health & Crop Sciences Sales of the feed additive methionine grew due to a recovery in market prices and an increase in shipments. In the area of crop protection chemicals, shipments decreased in Japan due to the effects of the consumption tax increase, shipments rose in overseas markets due to expanded sales. As a result, including the positive effect of the weaker yen, the segment’s sales increased by ¥23.8 billion compared with the same period of the previous fiscal year, to ¥231.0 billion, and operating income grew by ¥8.2 billion, to ¥22.8 billion.Pharmaceuticals In North America, shipments of Lunesta® (sedative hypnotic) decreased sharply as marketing exclusivity ended. Shipments of Latuda® (atypical antipsychotic), however, expanded significantly. In China, shipments of Meropen® (carbapenem antibiotic) showed steady growth.

In Japan, overall sales decreased sharply due to the impacts of Japanese National Health Insurance drug price revisions and competition from generic drugs. As a result, the segment’s sales declined by ¥4.8 billion compared with the same period of the previous fiscal year, to ¥303.1 billion, and operating income decreased by ¥11.6 billion, to ¥27.6 billion. Others In addition to the above five segments, the Sumitomo Chemical Group engages in supplying electrical power and steam, providing services for the design, engineering, and construction management of chemical plants, providing transport and warehousing, and conducting materials and environmental analysis. The segment’s sales increased by ¥4.0 billion compared with the same period of the previous fiscal year, to ¥45.0 billion. Operating income decreased by ¥0.2 billion, to ¥5.0 billion.