Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Japan
  4. Japan Exchange
  5. Showa Denko K.K.
  6. News
  7. Summary
    4004   JP3368000000

SHOWA DENKO K.K.

(4004)
  Report
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsOther languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Showa Denko K K : Revises Forecast of Consolidated Performance, and to Record Extraordinary Loss

05/09/2021 | 10:04pm EDT

NEWS RELEASE

SHOWA DENKO K.K.

13-9, Shiba Daimon 1-chome

Minato-ku Tokyo 105-8518

May 10, 2021

Showa Denko Revises Forecast of Consolidated Performance,

and to Record Extraordinary Loss

Showa Denko (SDK) (TOKYO: 4004) announces that it revises its forecast of consolidated business results for the first half of the year ending on December 31, 2021, which was announced on February 17, 2021, taking the latest economic conditions into consideration. Following this revision, SDK also revises its full-year forecast of consolidated business results for the year ending on December 31, 2021. Regarding the latter forecast, we revised the full-year forecast to reflect only the changes in the performance forecast for the first half of 2021.

SDK also announces that it will record an extraordinary losses in its 2021 consolidated financial statements.

1. Revision of forecast of consolidated business results for January 1 - June 30, 2021

  1. Revised forecast of consolidated business results for January 1 - June 30, 2021

(Millions of yen, excepting net income per share)

Net sales

Operating

Ordinary

Net income

Net income

income

income

attributable to

attributable to

owners of the

owners of the

parent

parent per share

(¥)

Previous forecast (A)

630,000

11,000

6,000

-16,000

-109.68

(Announced on Feb. 17, 2021)

Revised forecast (B)

695,000

34,000

35,000

9,000

61.70

(Announced on May. 10, 2021)

(B) - (A)

65,000

23,000

29,000

25,000

Percentage of changes

10.3%

209.1%

483.3%

-

Reference

-43,225

Results for January 1 -

326,621

-25,795

-54,575

-374.11

June 30, 2020

(2) Reasons for the revision

Regarding net sales, although the Others segment's sales is expected to decrease due to unconsolidation of Shoko Co., Ltd. resulting from the sale of SDK's shares in Shoko aiming to tender them into a tender offer, sales in all the other segments are expected to increase from those in the previous forecast. In the Showa Denko Materials' segment, sales of semiconductor related products have been exceeding previous forecast due to tighter supply-demand situation. In the Inorganics segment, sales volumes of graphite electrodes have been exceeding the previous forecast due to an improvement in supply-demand situation. In the Petrochemicals segment, market prices of products have been exceeding the level in the previous forecast due to a rise in raw naphtha prices and strong demand in Asia.

Operating income is expected to increase in all segments excepting the Others segment. In the

1

Showa Denko Materials segment, operating income is expected to increase due to an increase in sales of electronic materials and circuit board materials resulting from market growth in the semiconductor industry and the data center industry. In addition, operating income from sales of mobility materials has been exceeding the previous forecast due to the recovery of production in the car industry which is stronger than expected. In the Inorganics segment, operating income has been increasing due to an increase in sales volumes of graphite electrodes which exceeds the previous forecast. In the Petrochemicals segment, operating income has been increasing because market prices of products continue exceeding the level in the previous forecast due to strong demand in Asia, a cold wave in the United States in the last winter, and a rise in raw naphtha prices.

On the basis of the situation above, we also expect improvements in ordinary income and net income attributable of owners of the parent from those in the previous forecast.

2. Revision of forecast of consolidated business results for January 1 - December 31, 2021

  1. Revised forecast of consolidated business results for January 1 - December 31, 2021

(Millions of yen, excepting net income per share)

Net sales

Operating

Ordinary

Net income

Net income

income

income

attributable to

attributable to

owners of the

owners of the

parent

parent per share

(¥)

Previous forecast (A)

1,280,000

45,000

35,000

-14,000

-95.97

(Announced on Feb. 17, 2021)

Revised forecast (B)

1,345,000

68,000

64,000

11,000

75.40

(Announced on May. 10, 2021)

(B) - (A)

65,000

23,000

29,000

25,000

Percentage of changes

5.1%

51.1%

82.9%

-

Reference

Results for January 1 -

973,700

-19,449

-43,971

-76,304

-523.06

December 31, 2020

(2) Reasons for the revision

Regarding consolidated performance forecast for full-year 2021, we revised the forecast to reflect only the changes in the performance forecast for the first half of 2021.

Regarding the dividend, we do not revise our forecast that the Company will pay ¥65 per share as year-end dividend.

3. Recording of extraordinary losses

At Kitakata Plant, which is located in Kitakata City, Fukushima Prefecture, SDK currently manufactures aluminum specialty components. Recently, at the Plant, we found groundwater contamination by fluorine and other chemicals exceeding environmental standard, which was caused by a business operated in the past. Therefore, SDK has decided to conduct construction work to establish environmental measures as countermeasures against the groundwater contamination in order to conform to the Soil Contamination Countermeasures Act. To cover the expense for the construction work, we have decided to record an extraordinary loss of about 9 billion yen in the Company's consolidated financial statements for the first quarter of 2021. In addition, we also have decided to record an extraordinary loss of about 2.7 billion yen in the Company's consolidated financial statements for the same period, in order to reflect the special early retirement allowance incurred due to the structural reform in the Showa Denko Materials segment.

2

[Reference] Segment-wise breakdown of net sales and operating income (consolidated) for the first- half of the year ending on December 31, 2021

Net sales

(Billions of yen)

Performance forecast for Jan. 1 - June 30, 2021

(Consolidated)

Segment

Previous forecast

Revised forecast

Increase/

2020 actual

(Jan. - June 2021)

(Jan.- June 2021)

results

Announced on

Announced on

decrease

(Jan. - June 2020)

Feb. 17, 2021

May 10, 2021

Petrochemicals

96.0

125.0

29.0

95.7

Chemicals

79.0

84.0

5.0

72.0

Electronics

47.0

49.0

2.0

44.6

Inorganics

37.0

47.0

10.0

43.0

Aluminum

42.0

51.0

9.0

38.8

Showa Denko Materials

300.0

321.0

21.0

-

Others

53.0

36.0

-17.0

55.6

Adjustments

-24.0

-18.0

6.0

-23.2

Total

630.0

695.0

65.0

326.6

Operating income

Petrochemicals

4.5

9.0

4.5

-3.7

Chemicals

6.5

9.0

2.5

5.0

Electronics

2.5

3.5

1.0

1.8

Inorganics

0.0

4.5

4.5

-22.9

Aluminum

2.5

5.0

2.5

-0.2

Showa Denko Materials

1.0

10.0

9.0

-

Others

0.5

0.2

-0.3

0.5

Adjustments

-6.5

-7.2

-0.7

-6.3

Total

11.0

34.0

23.0

-25.8

NoteThe forecast in this document has been worked out based on information available as of today, and assumptions as of today about uncertain factors that can affect our future performance. Actual business results may differ materially from the above forecast due to a variety of risk factors, including, but not limited to, the impact of COVID-19 on the world economy, economic conditions, costs of naphtha and other raw materials, demand and market prices for graphite electrodes and other products, and foreign exchange rates.

For further information, contact:

IR Office, Finance & Accounting Department (Phone: 81-3-5470-3323)

3

Disclaimer

Showa Denko KK published this content on 10 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2021 02:03:04 UTC.


ę Publicnow 2021
All news about SHOWA DENKO K.K.
07/12Japanese shares rebound on growth confidence, Yaskawa's outlook
RE
07/08SHOWA DENKO K K : Announcement regarding Company Split (Absorption-Type Company ..
PU
07/08SHOWA DENKO K K : to Record Extraordinary Loss, and Revises Forecast of Consolid..
AQ
07/08SHOWA DENKO K K : Announces Company Split and Transfer of Energy Storage Devices..
AQ
07/08Japanese shares fall as Tokyo declares state of emergency ahead of Olympics
RE
07/08Showa Denko K.K. Revises Consolidated Earnings Guidance for the January 1 -ş ..
CI
07/07Japanese shares fall as COVID-19 emergency measures stoke slowdown worries
RE
07/07SHOWA DENKO K K : About a Media Report Concerning Showa Denko
AQ
06/28SHOWA DENKO K K : Develops WelQuick™ to Bond Dissimilar Materials Quickly
PU
06/28SHOWA DENKO K K : Develops WelQuick to Bond Dissimilar Materials Quickly
AQ
More news
Financials
Sales 2021 1 380 B 12 497 M 12 497 M
Net income 2021 9 450 M 85,6 M 85,6 M
Net Debt 2021 756 B 6 844 M 6 844 M
P/E ratio 2021 47,1x
Yield 2021 2,13%
Capitalization 446 B 4 040 M 4 037 M
EV / Sales 2021 0,87x
EV / Sales 2022 0,76x
Nbr of Employees 33 684
Free-Float 94,2%
Chart SHOWA DENKO K.K.
Duration : Period :
Showa Denko K.K. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SHOWA DENKO K.K.
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 9
Last Close Price 3 055,00 JPY
Average target price 3 975,00 JPY
Spread / Average Target 30,1%
EPS Revisions
Managers and Directors
Kohei Morikawa President, CEO & Representative Director
Motohiro Takeuchi CFO, Representative Director & Head-Accounting
Hideo Ichikawa Chairman
Hiroshi Sakai Director & Chief Technology Officer
Masaharu Oshima Independent Outside Director
Sector and Competitors
1st jan.Capi. (M$)
SHOWA DENKO K.K.39.05%4 392
PIEDMONT LITHIUM INC.0.00%112 480
SAUDI BASIC INDUSTRIES CORPORATION18.54%97 117
AIR LIQUIDE12.15%84 351
WANHUA CHEMICAL GROUP CO., LTD.28.71%53 255
LYONDELLBASELL INDUSTRIES N.V.5.38%34 077