OREANDA-NEWS. The Sumitomo Chemical Group’s sales for the nine months ended December 31, 2015, totaled ¥1,577.8 billion, a decrease of ¥145.2 billion compared with the same period of the previous fiscal year. The Group posted operating income of ¥119.5 billion, ordinary income of ¥143.7 billion and net income attributable to owners of the parent of ¥84.6 billion, all showing year-on-year increases. 

The Sumitomo Chemical Group’s financial results by business segment for the nine-month period were as follows.

Petrochemicals & Plastics
Market prices of petrochemical products and synthetic resins declined because of lower feedstock prices. Shipments of petrochemical products and synthetic resins decreased due to the restructuring of the petrochemical business at the Chiba Works as well as a change in the commercial distribution channel for petrochemical products from Petro Rabigh and periodic plant maintenance there. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales decreased by ¥190.8 billion from the same period of the previous fiscal year, to ¥518.4 billion. Operating income increased by ¥18.7 billion, to ¥25.8 billion, due to higher profit margins and temporary licensing revenues.

Energy & Functional Materials
Sales of aluminum and resorcinol, a raw material for adhesives, declined due to a decrease in shipments. Market prices for synthetic rubber dropped due to lower raw materials prices. As a result, the segment’s sales decreased by ¥9.7 billion from the same period of the previous fiscal year, to ¥139.1 billion. Operating income declined by ¥0.7 billion, to a loss of ¥0.5 billion.

IT-related Chemicals
Although selling prices of polarizing film used in liquid crystal displays (LCDs) and touchscreen panels declined, shipments of these products increased due to growth in demand. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales rose by ¥24.5 billion from the same period of the previous fiscal year, to ¥322.8 billion. Operating income grew by ¥1.2 billion, to ¥24.9 billion.

Health & Crop Sciences
Sales of the feed additive methionine rose sharply due to higher market prices. As a result, including the positive effect of the weaker yen, the segment’s sales increased by ¥9.7 billion from the same period of the previous fiscal year, to ¥228.4 billion. Operating income grew by ¥18.3 billion, to ¥40.9 billion.

Pharmaceuticals
In Japan, despite efforts to increase shipments of Aimix® (anti-hypertension drug) and other drugs, sales declined due largely to a decrease in shipments of patent-expired originator drugs. In North America, sales of Latuda® (atypical antipsychotic) increased. The weaker yen had a positive effect on sales from overseas subsidiaries in yen terms. As a result, the segment’s sales grew by ¥25.4 billion from the same period of the previous fiscal year, to ¥328.5 billion. Operating income rose by ¥7.4 billion, to ¥35.0 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 decreased by ¥4.3 billion from the same period of the previous fiscal year, to ¥40.7 billion. Operating income increased by ¥1.1 billion, to ¥6.1 billion.