Denka revises down profit forecast on lower rubber production, weak demand

Tokyo – Denka Corp. has revised down its sales and profit forecast for the year ending 31 March, on lower chloroprene rubber production and weak demand.

In a statement 7 Feb, the Japanese materials supplier said it now expects total sales to come in at Yen380 billion (€2.3 billion), down 5% compared to earlier estimates.

Operating profit is to come in at Yen11 billion, down 42% compared to the previous estimate of Yen19 billion.

The downward revision, said Denka, was due to “lower-than-expected” demand for mainstay products such as electronics and advanced products.

In addition, the suspension of chloroprene rubber production, due to the Noto Peninsula earthquake on 1 Jan, impacted results, Denak added. (ERJ report)

As a result, the Japanese group said “sales, operating income, and ordinary income are expected to be significantly lower than the previously announced forecasts.”