After reporting solid growth in H1-2005 amid robust petrochemical demand, Mitsubishi Chemical Holdings Corp and Sumitomo Chemical Co Ltd have boosted their annual profit forecasts. Mitsubishi Chemical, Japan's top petrochem producer, after reporting a 14% rise in H1-2005 profit, augmented annual recurring profit forecast by 3%. Japan’s No.3 Sumitomo Chemical boosted annual forecast by 14% after posting 13% growth in H1 earnings.
Mitsubishi ranking as No.5 globally, posted 79 billion yen in recurring profit for April-September as against 69 billion yen a year ago. Mitsubishi Chemical's growth in coke for use in steel manufacturing and DVDs helped offset a profit fall in its mainstay petrochemicals division which was hit by plant repairs and an earthquake. Weak performance at its mainstay petrochemical division reflected regular plant repairs and hefty raw material costs due to higher crude oil prices. The company has been able to pass on some of the rise in naphtha costs to customers, but the spread on petrochemicals has been worsening overseas on higher supply in China. Mitsubishi has projected a 42% dip in petrochemicals' annual operating profit.
Sumitomo Chemical, citing profit growth in materials for liquid crystal display panels, lifted its annual recurring profit estimate to 125 billion yen from 110 billion yen.
11-Nov-05 
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