Shin-Etsu reports big revenue, profit increases across business units

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Shin-Etsu Chemical reported 39.7% higher net profit for the company's fiscal first nine months, ended 31 December, of ¥242.1 billion ($2.2 billion), compared with ¥173.3 billion in the corresponding period of the previous year. Operating income increased 33.4% year over year (YOY) to ¥324.6 billion and sales increased 13.7% to ¥1.2 trillion.Shin-Etsu's polyvinyl chloride (PVC) and chlor-alkali business generated a YOY operating income increase of 39.5%, to ¥90.9 billion, on sales of ¥399.3 billion, up 9.4%. Shintech, the US-based PVC business of Shin-Etsu, achieved high sales growth. The PVC business continues to perform well in Europe; sales elsewhere declined because of large-scale periodic maintenance at plants in Japan, the company says.Shin-Etsu's silicones business recorded a 19.2% YOY increase in operating income to ¥45.8 billion. Sales increased 13.5% YOY to ¥153 billion. For the specialty chemicals business, operating income increased 8.1% YOY, to ¥20.9 billion and sales grew 4.6%, to ¥92.3 billion. The company's cellulose derivatives, pharmaceutical-use products, construction materials products, and coating products performed steadily. Pheromone products and the Poval brand achieved strong results, says Shin-Etsu The semiconductor and silicon business increased its operating income by 56.9% YOY to ¥103.9 billion on sales of ¥285.6 billion, up 26.7%. Price adjustments and firm demand for semiconductor devices boosted the profitability of this sector. The electronics and functional materials business reported a 14.6% YOY rise in operating income to ¥52.4 billion on a 12% YOY increase in sales to ¥172.6 billion. Sales of Shin-Etsu's rare-earth magnets contributed substantially to the increase as demand soared for products with automotive applications, especially for hybrid cars. The optical fiber business performed well, the company says. Shin-Etsu has maintained its forecasts for the fiscal year ending 31 March 2019. The company projects a net profit of ¥290 billion, up by 8.9% YOY. Full-year sales are expected to be ¥1.56 trillion, with operating profit expected to rise by 15.8% YOY to ¥390 billion.