Japan Chemical Trading Blog
A Nikkei Newspaper article dated April 17th says, “Sumitomo Chemical Co., Ltd. is expected to report a 210% increase year-on-year in ordinary profit to 108 billion yen (approx. USD1.08 billion) for the year’s end on March 31, 2014, with the sales increasing by 14% year-on-year to around 2.23 trillion yen (approx. USD22.3 billion).”
The operating profit of 2 billion yen (USD20 million) can be generated by the company with a 1-yen depreciation against the US dollar.
Yen weakening more than expected, an improvement in performance of Petro Rabigh, a bet-the-company equity method affiliate, and the expansion of international sales of agricultural chemicals including chemical herbicides that are showing increased sales in foreign countries evolving around the partnership with Monsanto Company in the US have all contributed to the increase in revenue.
Sumitomo Chemical is a chemical giant that is positioned second in Japan after Mitsubishi Chemical by sales and has a well-balanced segment composition including petrochemicals, electronic component materials, agricultural chemicals and drugs.
The company is also making substantial investments in Singapore and Saudi Arabia. I have high expectations for this company because they have a courageous global management style.