SDK Revises Performance Forecast for First Half 2004
August 5, 2004
In view of the recent trends of its businesses, Showa Denko K.K. (SDK) announces a revision of its performance forecast for the first half of 2004. The earlier forecast, made public on February 17, 2004 on the occasion of the announcement of the 2003 business results, has been revised as in the tables below.
1. Consolidated basis (For the period from January 1 to June 30, 2004)
| Net sales | Operating income | Ordinary profit | Net income | |
| Earlier forecast (A) |
3,400 | 190 | 120 | 37 |
| Revised forecast (B) | 3,482 | 222 | 162 | 63 |
| (B) - (A) | 82 | 32 | 42 | 26 |
| Rate of increase | 2.4% | 16.8% | 35.0% | 70.3% |
| First half 2003 results | 3,456 | 161 | 105 | 38 |
| 2003 results (full-year) | 6,894 | 385 | 238 | 103 |
2. Non-consolidated basis (For the period from January 1 to June 30, 2004)
| Net sales | Operating income | Ordinary profit | Net income | |
| Earlier forecast (A) |
2,300 | 115 | 70 | 33 |
| Revised forecast (B) | 2,453 | 154 | 114 | 57 |
| (B) - (A) | 153 | 39 | 44 | 24 |
| Rate of increase | 6.7% | 33.9% | 62.9% | 72.7% |
| First half 2003 results | 2,270 | 99 | 65 | 19 |
| 2003 results (full-year) | 4,620 | 229 | 130 | 50 |
3. Background for the revision
Net sales for the first half of 2004 will be higher than the earlier forecast both on a consolidated and non-consolidated basis. This is because the Petrochemicals segment’s sales have increased as a result of larger shipment volumes and higher selling prices, which reflect rising raw material costs.
Operating income for the half-year term will also be higher than the initial forecast both on a consolidated and non-consolidated basis owing to increases in shipment volumes and selling prices in the Petrochemicals and Inorganic Materials segments.
Due mainly to the increase in operating income, both ordinary income and net income will increase on a consolidated and non-consolidated basis.
We will announce the results for the first half of 2004 on August 10. On that occasion, we will also announce our performance forecast for the full-year of 2004.
