Showa Denko’s sales decreased by 8.6%, with the operating income down 32.9%, the ordinary profit down 33.3% and the profit for the term down 34.5%, comparing with the previous term.

A substantial setback was seen in the inorganic segment. The approximately 15% reduction in the production of graphite electrodes from the latter half of the term exerted substantial influences upon both sales and profit in the segment.

In the ceramics business, there also was a decrease in volume in each of the products like general-purpose alumina, abrasive materials and fine ceramics for electronics materials. The sales of the segment as a whole decreased by 13.5% with the operating income down 32.6%.

The chemicals segment including industrial and specialty gases also suffered a sluggish business. As for the industrial gases, there was no noticeable drop in sales, but the profit was oppressed by the cost-hike in the chain-reaction related to the transportation to cope with the tight supply of carbon dioxide in the West Japan area.

The delivery of specialty gases also decreased under the production adjustment by the semiconductors and display association. In terms of the whole segment, the sales trend stayed flat with an increase of 0.6% but the operating income decreased by 21.5%, comparing with the previous term.

The next term forecast as of the second quarter is that the sales will decrease by 22.2% amounting to 370 billion yen with operating income down 89.5% amounting to 9 billion yen, ordinary profit down 91.7% amounting to 7 billion yen and the fourth quarter end loss down 103.0% amounting to minus 2 billion yen, comparing with the previous term.

The forecast throughout the year is that the sales will decrease by 10.6% amounting to 810 billion yen with operating income down 58.6% amounting to 50 billion yen, ordinary profit down 60.6% amounting to 47 billion yen and the net profit for the term down 79.5% amounting to 15 billion yen, comparing with the previous year.