Resonac Revises Forecast of Consolidated Performance
November 10, 2023 at 07:09 am EST
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Resonac Holdings Corporation (TOKYO: 4004) announces the revision of its forecast of consolidated business results for the full year ending on December 31, 2023, which was announced on Aug. 8, 2023.
Reasons for the revision of forecast
Net sales are expected to increase mainly in the Semiconductor and Electronic Materials segment and the Chemicals segment, and the full-year forecast is revised upward.
Operating income is revised upward due to the upward revision of the net sales forecast and the reduction of common expenses throughout the company. Ordinary income is revised upward due to the upward revision of operating income. Net income attributable to owners of the parent is revised downward. In the third quarter (Jul - Sep), an extraordinary income of 24.3 billion yen was recorded for the transfer of the diagnostic medicine business, but we expect to record an extraordinary loss on structural reforms related to the restructuring of the hard disk media business. Structural reform-related expenses include extra retirement payments of 6.5 billion yen and an impairment loss of 4.1 billion yen.
Performance forecast and other statements pertaining to the future as contained in this presentation are based on the information available as of today and assumptions as of today regarding risk factors that could affect our future performance. Actual results may differ materially from the forecast due to a variety of risk factors, including, but not limited to, the international situation, costs of naphtha and other raw materials, demand or market conditions for our products such as graphite electrodes and other commodities and foreign exchange rates. We undertake no obligation to update the forward-looking statements unless required by law.
Resonac Holding Corporation (formerly Showa Denko KK) is a holding company organized around 7 family of products:
- materials (43.8% of net sales): electronics materials (epoxy molding compounds, die bonding materials, CMP slurries, anisotropic conductive films), printed wiring board materials (copper-clad laminates, photosensitive dry films), mobility components (plastic molded products, friction materials, powder metal products, carbon anode materials for LIBs), energy storage devices and systems (automotive and industrial batteries), and life sciences (diagnostics, contracted manufacturing of regenerative medicine products);
- petrochemical products (19.6%): olefins (polyethylene, polypropylene) and organic chemical products (vinyl acetate monomer, ethyl acetate and plastics);
- chemical products (12.9%): caustic soda, chlorine, liquid ammonia, amino acids, polymers, gas (oxygen, nitrogen, hydrogen), etc.;
- electronic components (8.3%): hard disks, semiconductors components, magnetic components, etc.;
- inorganic products (7.1%): ceramics and carbons (graphite electrodes);
- aluminum products (5.3%): aluminum foils, extruded products, forged products, cans, etc.;
- other (3%).
Net sales break down geographically as follows: Japan (53.4%), China (12%), Asia (20.6%) and other (14%).
RESONAC HOLDING CORPORATION 
