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TOKYO, Feb 14, 2017 - (JCN Newswire) - Showa Denko ("SDK"; TSE:4004) hereby announces a revised forecast of consolidated financial results for full-year 2016. This follows the announcement on February 13, 2017 that SDK will postpone the announcement of its financial results for 2016 in connection with the postponement of the announcement of financial results by Shoko Co., Ltd. (Shoko), one of SDK's consolidated subsidiaries. SDK also announces the recording of loss due to impairment (an extraordinary loss).
1. Revised forecast of consolidated business results for Jan. 1 - Dec. 31, 2016
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Reasons for the revision of consolidated performance forecast
Operating income will increase as the exchange rate of the yen against the U.S. dollar substantially depreciated toward the end of the term. Furthermore, operating income in the Petrochemicals segment is expected to exceed the earlier forecast because the spread of ethylene, etc. has improved, reflecting the tight supply situation in the Asian market. Operating income in the Electronics segment will also exceed the earlier forecast because shipment volumes of HD media increased. Ordinary income will exceed the earlier forecast, reflecting the increase in operating income and the decrease in exchange loss due to lower yen. However, net income attributable to owners of the parent will fall below the earlier forecast because of the recording of loss due to impairment (an extraordinary loss) as detailed below. There is no change in the forecast of paying dividends of 30 yen per share.
Segment-wise breakdown of net sales and operating income (consolidated)
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2. Recording of impairment loss (extraordinary loss)
Profitability of our electronics materials operations at Chichibu City, Saitama Prefecture, and of our aluminum specialty components operations at Oyama City, Tochigi Prefecture, has declined. Having reassessed their business values based on future performance forecast, we have decided to record impairment loss for these operations. We will also record impairment loss for low-profitability assets and idle assets at consolidated subsidiaries, etc. As a result, we will record impairment loss of 15,200 million yen in total in the fourth quarter.
(1) Impairment loss for electronics materials operations
Profitability of our electronics materials operations at Chichibu City, Saitama Prefecture, has declined. We reassessed its business value, taking into consideration its performance forecast. As a result, we have decided to reduce the book value of the relevant fixed assets to a recoverable amount, and record an extraordinary loss of 4,500 million yen.
(2) Impairment loss for aluminum specialty components operations
Profitability of our aluminum specialty components operations at Oyama City, Tochigi Prefecture, has declined. We reassessed its business value, taking into consideration its performance forecast. As a result, we have decided to reduce the book value of the relevant fixed assets to a recoverable amount, and record an extraordinary loss of 8,000 million yen.
Press release: www.sdk.co.jp/assets/files/english/news/2017/20170214_sdknewsrelease1_e.pdf
Contact:
IR Office, Finance & Accounting Department
Phone: 81-3-5470-3323
Topic: Earnings
Source: Showa Denko K.K.
Sectors: Chemicals, Spec.Chem
https://www.acnnewswire.com
From the Asia Corporate News Network
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