Sumitomo Chemical Cuts Annual Profit Estimates
Tokyo, Sept. 30 (Jiji Press)–Sumitomo Chemical Co. said Tuesday it has lowered its group operating profit estimate for fiscal 2008 to 70 billion yen from 95 billion yen from previously seen.
For the year to March 2009, the major Japanese chemical maker also cut its net profit forecast to 15 billion yen from 55 billion yen. But its sales projection was revised up to 2.11 trillion yen from 2.08 trillion yen.
The profit downward revisions were attributed to weaker-than- expected earnings projections at the company’s petrochemical and basic chemical divisions at a time of higher naphtha prices and a weaker yen.
A delay in the launch of a new plant in Saudi Arabia also put downward pressure on the company’s profit estimates, company officials said.
Furthermore, Sumitomo Chemical cut its group operating profit estimate to 27 billion yen from 33 billion yen for April-September. Net profit is now estimated at 5 billion yen, down from 10 billion yen. [EARNINGS]END
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