TOKYO, May 15, 2020 - (ACN Newswire) - Showa Denko (SDK; TSE:4004) announces its decision to withdraw its forecast of consolidated financial results for the first half of 2020 and full-year 2020 published on February 13, 2020. This is because SDK considers that it is very difficult to calculate the degree of influence of the coronavirus disease 2019 (COVID-19), and the sharp decline in crude oil prices, on SDK's financial results. SDK also decided to withdraw its forecast of dividend payment for 2020. Thus, SDK's consolidated performance forecast and dividend payment forecast are left undecided for the time being. We sincerely apologize for the inconvenience caused to our shareholders, investors and other parties.
1. Revised forecast of consolidated business results
(1) For the first half of 2020 (Jan. 1 - June 30, 2020)
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_1.jpg
(2) For full-year 2020 (Jan. 1 - Dec. 31, 2020)
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_2.jpg
(3) Reasons for the revision
In the latter part of the first quarter, we started to feel the impact of the outbreak of COVID-19 on our business results through production cuts by our customers, mainly in China. In the second quarter, we are now seeing a serious economic slowdown due to the pandemic in major markets, including Europe and the United States. Customers in many countries are cutting production as a result of restrictions on outings. These factors are expected to have a significant impact on SDK's business results. Furthermore, the sharp decline in crude oil prices will affect SDK's petrochemical business, as a sharp decline in naphtha price will generate a negative influence of the difference between the receipts and disbursements of raw materials. However, the situation is extremely uncertain at present, and we cannot accurately predict the real impact of COVID-19 on the global economy, the time when the pandemic ends, and how crude oil prices fluctuate. In view of the extreme difficulty in making a reasonable estimate, we have decided to withdraw our performance forecast announced on February 13, 2020. As soon as it becomes possible to make a reasonable estimate, we will announce a new performance forecast.
2. Revised forecast of dividend payment
(1) Revised forecast
Table 1: http://acnnewswire.com/topimg/SDK_20201Q_3.jpg
(2) Reasons for the revision
As it is now difficult to estimate the influence of the COVID-19 pandemic and the sharp decline in crude oil prices on SDK's financial results, we have decided to withdraw our dividend payment forecast announced on February 13, 2020. We will announce a new dividend payment forecast as soon as it becomes possible to make a reasonable estimate of our business results.
IR Office, Finance & Accounting Department, Tel: 81-3-5470-3323
Source: Showa Denko K.K.
From the Asia Corporate News Network
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