Sumitomo Chemical raised its forecast for the year to March 2027 on 2 November. It now expects core operating profit of ¥270bn, up 25.6% from the ¥215bn it published on 14 May, and net profit attributable to owners of the parent of ¥90bn, up from ¥70bn.
Where the upgrade sits
Operating profit is forecast at ¥215bn, up from ¥177bn. Revenue is guided to ¥2.49tn from ¥2.36tn. Core operating profit is the company's own measure: operating profit including equity-method results, with non-recurring items stripped out.
The Essential & Green Materials segment, which covers synthetic resins and industrial chemicals, is now forecast to earn ¥75bn in core operating profit, against ¥20bn in May. The segment's ¥55bn increase equals the group's. The company says its earlier forecast built in risk for an uncertain business environment, and operations are now progressing smoothly.
The ICT & Mobility Solutions segment gains ¥5bn, to ¥60bn, on higher semiconductor process material shipments. Sumitomo Pharma's segment gains ¥14bn, to ¥108bn, on strong US sales led by Gemtesa. Corporate costs and other items are forecast at a ¥41bn loss, against ¥22bn before. The agro and life solutions segment stays at ¥65bn.
What the first half showed
For the six months to September, core operating profit was ¥144.5bn, up 32.9% on the year. The materials segment earned ¥62.1bn, against a loss in the same period a year earlier. The company credits better results at Rabigh Refining and Petrochemical Company, an equity-method affiliate, along with inventory valuation gains as resin prices rose.
A separate notice says the affiliate's improvement produced an equity-method gain of ¥24.5bn in the July-to-September quarter, reflected in the interim results.
Shareholders
The company raised its year-end dividend forecast to ¥9 a share, which makes the annual forecast ¥17. The interim dividend is ¥8. The company's own caveat applies: actual results may differ from the forecast.