English | 简体中文 | 繁體中文 | 한국어 | 日本語
Wednesday, 12 August 2020, 15:00 HKT/SGT

Source: Showa Denko K.K.
SDK Revises Forecast of Consolidated Performance for Full-year 2020

TOKYO, Aug 12, 2020 - (JCN Newswire) - Showa Denko (SDK; TSE:4004) has revised its forecast of consolidated performance for full-year 2020 as described below. (In our earlier news release of May 15, 2020, performance forecast was left "undecided."). The revision is based on SDK's actual business results for the first half of this year, recent economic trends, and forecast of the performance of our newly consolidated subsidiary Hitachi Chemical Company, Ltd. (Hitachi Chemical) for the July-December period.

1. Revised forecast of consolidated business results

(1) For full-year 2020 (Jan. 1 - Dec. 31, 2020)
* See www.sdk.co.jp/assets/files/english/news/2020/20200812_sdknewsrelease_e.pdf

(2) Reasons for the revision

Following the consolidation of Hitachi Chemical, we have worked out our full-year 2020 consolidated performance forecast, taking into account Hitachi Chemical's expected performance for the July-December period. This forecast reflects expenses related to the acquisition of Hitachi Chemical's shares; the fall in sales volumes of graphite electrodes due to lower demand; the influence of the fluctuations in naphtha prices on the Petrochemicals segment; and the impact of the coronavirus disease 2019 (COVID-19) on respective business segments.

Major assumptions are as follows:

1) Recording of expenses related to the acquisition of shares in Hitachi Chemical
SDK will record expenses of 48.2 billion yen, consisting of 26.8 billion yen operating expenses and 21.4 billion yen non-operating expenses, in 2020 with regard to its acquisition of shares in Hitachi Chemical. "Advisory fee, attorney's fee, temporary expenses pertaining to fund-raising, and registration and license tax" are temporary expenses. "Post-merger integration (PMI) expenses, goodwill amortization expenses, and interest on borrowing related to share acquisition" represent expenses corresponding to the fiscal year 2020.

- Advisory fee, attorney's fee, etc. 3.5 billion yen (Operating expenses)
- Post-merger integration (PMI) expenses 4.6 billion yen (Operating expenses)
- Goodwill amortization expenses 18.7 billion yen (Operating expenses)
- Temporary expenses for fund-raising, registration tax, etc. 16.1 billion yen (Non-operating expenses)
- Interest on borrowing related to share acquisition, etc. 5.3 billion yen (Non-operating expenses)
Total: 48.2 billion yen

2) Exchange rates and naphtha price
Our performance forecast for full-year 2020 is based on the assumption that the foreign exchange rates and naphtha price for the July-December period will be as follows:

- Exchange rates: 105 yen to the US dollar; 115 yen to the Euro
- Domestic naphtha price: 25,100/KL yen

As for the forecast of dividend payment at the end of the year, we would like to keep it "undecided" in view of the difficulty in predicting the time when the COVID-19 pandemic ends, and the continuation of many uncertain factors regarding our business environment in the second half of the year. As soon as it becomes possible to make a reasonable estimate of the business environment, we will announce a new dividend payment forecast.

Note: The 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.

About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY) is a major manufacturer of chemical products serving from heavy industry to computers and electronics. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory/graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high bright LEDs, and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Showa Denko K.K., IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323

Source: Showa Denko K.K.

Showa Denko K.K. (TSE: 4004)

Topic: Press release summary
Sectors: Chemicals
From the Asia Corporate News Network

Copyright © 2020 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.


Showa Denko K.K. Releated News
Oct 27, 2020 15:00 HKT/SGT
Oct 27, 2020 15:00 HKT/SGT
SDK to Split Its Optical Semiconductor Business
Oct 16, 2020 15:00 HKT/SGT
Showa Denko Markets PNVA(TM) 'GE191 Series' for Use as Binder to Form Heat-resisting Ceramic Layer in Separators for LIBs
Oct 16, 2020 11:30 HKT/SGT
昭和電工、リチウムイオン電池のセパレーター用セラミック耐熱層用バインダー PNVA(R)「GE191シリーズ」の展開を本格化
Sept 24, 2020 18:00 HKT/SGT
Showa Denko Announces Merger between Consolidated Subsidiaries and Change of Company Name
More news >>
Copyright © 2020 ACN Newswire - Asia Corporate News Network
Home | About us | Services | Partners | Events | Login | Contact us | Cookies Policy | Privacy Policy | Disclaimer | Terms of Use | RSS
US: +1 800 291 0906 | Beijing: +86 400 879 3881 | Hong Kong: +852 8192 4922 | Singapore: +65 6653 1210 | Tokyo: +81 3 6859 8575