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Ladies and gentlemen, thank you very much for joining us. This is Motohiro Takeuchi, CFO of Showa Denko. Thank you very much for your interest in the performance of our company. First of all, we would like to express our deepest sympathy to those who contracted the new coronavirus and those who are faced with difficult living environment due to the virus.
Let me now present the overview of 2020 Q1 financial results. Please turn to Page 2. Number of consolidated subsidiaries is 61, no change from the end of previous term. Equity method is applied to 11 companies, same as the end of fiscal 2019. January to March average exchange rate was JPY 108.9 to the dollar. Yen appreciated JPY 1.3 year-on-year from JPY 110.2. End-of-term exchange rate used to evaluate assets and liabilities was JPY 108.8 at the end of March. Yen appreciated 0.7 from JPY 109.6 at the end of previous term. As for euro, January to March average was JPY 120.1 to the euro. Yen appreciated JPY 5 year-on-year from JPY 125.2.
Due to rapid drop in oil prices, recent naphtha spot price is much lower. However, with the time lag, January to March naphtha price was JPY 44,800 per kiloliter, up 8.7% or JPY 3,600 year-on-year from JPY 41,200 per kiloliter. Although there was no major impact on feedstock cost adjustment, the time lag factor, which shows the unit price drop during the transportation of the naphtha to Japan worsened significantly. April to June domestic naphtha price is expected to rapidly decline to JPY 23,000 per kiloliter, about half of January to March level. As the slowdown of Chinese economy lowers global demand, aluminum LME price decreased $168 or 8.9% year-on-year from $1,881 per ton to $1,713 per ton.
Please turn to Page 3. This shows the summary of 2020 Q1 consolidated results. Net sales were JPY 171.7 billion, down JPY 63 billion or 26.8% year-on-year. Electronic sales increased on higher volume of hard disks. Chemical sales also grew. Inorganic sales decreased significantly on lower volume of graphite electrodes. Overall sales declined. Operating income was JPY 2.5 billion, down JPY 42.9 billion or 94.6% year-on-year. It was a major decrease. While electronics profit increased on higher volume, Inorganics profit showed a major decline. I would explain the details of the sales and operating income on Pages 5 and 6.
Ordinary income was JPY 3.2 billion, down JPY 41 billion or 92.7% year-on-year. Under nonoperating income and expenses, equity earnings improved JPY 0.9 billion year-on-year, with much better settlement gap compared to last year of NS Styrene Monomer. Foreign exchange gains and losses improved JPY 0.3 billion with the depreciation of Malaysian ringgit against U.S. dollars at Malaysian subsidiary of Carbon division. Under other, environmental measures-related expenses of plants decreased. Overall, nonoperating income and expenses improved JPY 1.9 billion. Extraordinary profit and loss improved JPY 0.6 billion, with gain on sales of noncurrent assets at SHOKO Company Limited and others. With smaller profits, income tax payment dropped JPY 9.8 billion. JPY 0.3 billion returned under income taxes. Net income was JPY 3.8 billion, down JPY 30.5 billion. Net income attributable to owners of the parent was JPY 2.7 billion, down JPY 30.4 billion or 91.8% year-on-year.
Please turn to Page 4. Extraordinary profit increased by JPY 1.4 billion year-on-year, mainly with gain on sales of noncurrent assets at SHOKO Company Limited. As for extraordinary loss, we booked JPY 0.8 billion loss on sales and retirement of noncurrent assets. With no other major losses, extraordinary loss increased by JPY 0.8 billion to JPY 1.5 billion. As a result, net extraordinary profit and loss improved JPY 0.6 billion to JPY 0.2 billion.
Let me explain sales and operating income by segment on Pages 5 and 6. This time to make it easy to see, sales and operating income are shown together by segment. Page 5 shows 3 segments, including petrochemicals, chemicals and electronics. Petrochemical sales decreased by JPY 7.7 billion year-on-year to JPY 55 billion. Operating income decreased by JPY 4.1 billion to minus JPY 0.2 billion. Olefin sales were down on lower volume due to relaxation of supply and demand balance in Asia and lower market prices with a drop in naphtha price. Olefin profit declined with time lag factor and smaller spread.
Because of shutdown maintenance this year for ethyl acetate and vinyl acetate, volume decreased. With lower market prices, sales and profit of organic chemicals declined. SunAllomer sales decreased on lower market prices and time lag between the lower material prices and market prices, compressed spread and its profit declined.
Chemicals sales slightly increased JPY 0.3 billion year-on-year to JPY 36.3 billion. Chemicals operating income slightly decreased by JPY 0.1 billion to JPY 2.3 billion. Although ammonia and acrylonitrile were flat year-on-year, basic chemicals sales and profit decreased on lower export of chloroprene rubber. Electronic chemical sales and profit increased on recovery for semiconductor industry. Industrial gases sales were flat year-on-year and its profit slightly decreased with higher external material procurement cost at the time of shutdown maintenance of Kawasaki plant. Sales and profit of functional chemicals decreased on lower volume for China. Coating materials were newly consolidated in the second half last year, pushing up sales number.
Electronics sales were JPY 23.6 billion, up JPY 3 billion year-on-year. Operating income was JPY 1 billion, up JPY 1.3 billion year-on-year. Hard disk shipment was solid despite low level of PCs. Higher volume of media for data centers led to more than 20% increase of total hard disk shipment year-on-year during the first quarter. Compound semiconductor sales grew on higher volume for export, but operating income was flat year-on-year. Despite lower add-on material sales, with higher shipment volume of packaging material, sales of lithium-ion materials were flat year-on-year. Operating income grew on structural reform of our [ node ] business. SiC epitaxial wafer business was solid in Japan, but lower export led to slightly lower sales. Profit declined on increased development cost.
Please turn to Page 6. Inorganic sales dropped significantly by JPY 51 billion year-on-year to JPY 21.4 billion. Operating income also showed a major decline by JPY 38.7 billion to JPY 0.8 billion. In ceramics, decreased production in steel and auto industries led to lower shipment of abrasives. Shipment of fine ceramics for electronic materials, including titanium oxide also decreased. Ceramics sales and profit declined. Graphite electrodes volume was down on lower steel production and partial clearance of the inventory by customers. Also with lower market prices, sales and profit of graphite electrode decreased significantly. Sales volume remained below 20,000 tons. Aluminum sales were JPY 19.2 billion, down JPY 4.6 billion year-on-year. Aluminum profit was also down by JPY 0.2 billion year-on-year to end at tens of billions of yen. Lower shipment volume of high-purity foils for capacitors led to lower sales of road products. Profit was flat year-on-year.
Aluminum specialty component sales decreased on lower volume of automotive components. However, the operating income slightly increased on lower depreciation with the absence of impairment loss booked last year. As for aluminum can, domestic production capacity was reduced, and beer consumption decreased with stay-home measure to counter new coronavirus in Vietnam. Overall, lower volume led to decreased sales and profit. As for others, lower market prices of metal and ceramics business and others at SHOKO Company Limited led to lower sales and operating income.
Please turn to Page 7. Inventories were up at the end of March. In petrochemicals, there was 1 additional naphtha vessel received at the end of term. In Inorganics, inventories of graphite electrodes increased. Cash and deposits were down. Notes and accounts receivable decreased on lower market prices of petrochemicals and others. Total assets were JPY 1,051.6 billion, down JPY 24.8 billion. Total liabilities were JPY 557.9 billion, up JPY 1 billion from the end of December. Notes and accounts payable decreased, but inventory bearing debt increased. Despite booking net income attributable to owners of the parent, retained earnings decreased after dividend payment in the last term, and the valuation difference on available for sale securities and foreign currency translation adjustment and others decreased. Total net assets were JPY 493.6 billion, down JPY 25.8 billion from the end of December.
Please turn to Page 8. Interest-bearing debt was JPY 325.1 billion, up JPY 26.6 billion from the end of December. D/E ratio was 0.69x, up 0.09 points from the end of December. Stockholders' equity ratio was 45.1%, down 1.3 points.
Please turn to Page 9. Pages 9 to 12 show quarterly operating income in bar graphs. Page 9 is the company-wide graph and 10 to 12 by segment. Page 13 and onwards showing topics by segment. These pages are for your reference.
Lastly, let me explain why our performance forecast and dividend forecast are left undecided. Global economic activities are severely restrained due to the spread of new coronavirus. Recently, in many industries such as automobile and steel, production has decreased significantly. Also because of the slump in demand, crude oil prices have been rapidly dropping. Under these circumstances, it is extremely difficult to rationally calculate the degree of influence of the spread of COVID-19 and sharp decline in crude oil prices on our Q2 and second half financial results at this time. Therefore, we decided to withdraw performance forecast announced in February. We have also withdrawn the dividend payment forecast. As the impact of the spread of COVID-19 and rapid decline in crude oil prices on the global economy is expanding further than the expectations, we must say that it is difficult to commit to JPY 130 per share dividend announced at the beginning of the term. We will make sure to realize certain level of dividend payment. When the spread of COVID-19 and oil prices changes settle, we will calculate and disclose the performance forecast and dividend forecast. Thank you for your attention.