Showa Denko Revises Performance Forecast

Showa Denko Revises Performance Forecast 
Tokyo, July 29, 2013 - (JCN Newswire) -  Showa Denko (SDK) (TSE: 4004) has
revised its earlier forecast of consolidated business results for the first
half of 2013 and for the full year announced on February 14, in view of the
recent business trends. 
I. Revised forecast of consolidated business results for Jan. 1 - June 30,
2013
(Millions of yen, excepting net income per share) 


                             Net   Oper.     Ord.      Net  Net income
                           sales  income   income   income   per share
Earlier forecast (A)
-Announced 2/14/2013     380,000  13,000   10,500    5,000       3.34
 
Revised forecast (B)
-Announced 7/29/2013     401,400   6,700    5,300    2,100       1.40
 
(B) - (A)                 21,400  -6,300   -5,200   -2,900         -
 
Percentage of changes       5.6%  -48.5%   -49.5%   -58.0%         -
 
First half 2012 results  352,313  16,019   14,423    7,884       5.27

II. Revised forecast of consolidated business results for Jan. 1 - Dec. 31,
2013
(Millions of yen, excepting net income per share) 


                             Net   Oper.     Ord.      Net  Net income
                           sales  income   income   income   per share
Earlier forecast (A)
-Announced 2/14/2013     800,000  35,000   30,000   15,000      10.02
 
Revised forecast (B)
-Announced 7/29/2013     850,000  26,000   22,000   10,000       6.68
 
(B) - (A)                 50,000  -9,000   -8,000   -5,000         -
 
Percentage of changes       6.3%  -25.7%   -26.7%   -33.3%         -
 
2012 results             739,811  28,108   23,448    9,368       6.26

III. Reasons for the revision of consolidated performance forecast 
Net sales for the first half of 2013 and for the full year will increase due
mainly to higher sales in the Petrochemicals segment, in which selling prices
are rising, reflecting higher naphtha prices. 
For the first half of the year, operating income in the Electronics segment
will fall due to the influence of reductions in the book value of rare earth
inventory, notwithstanding steady performance of the hard disk media business.
Operating income will also fall in the Inorganics segment, due to the influence
of the steel industry's adjustments on our graphite electrode business,
and in the Petrochemicals segment, due to the influence of weak demand for
olefins on the Asian market. 
As for the full-year performance forecast, operating income will generally
decrease due to the influence of the steel industry's prolonged inventory
adjustments on our graphite electrode business, in addition to the factors
pertaining to the first half of the year. 
Ordinary income and net income for the first half of 2013 and for the full
year will be lower than the initial forecast due mainly to the fall in
operating income. 
Note: The above forecast is based on the information available as of today and
assumptions as of today regarding risk factors that could affect our future
performance. Actual results may differ materially from the forecast due to a
variety of risk factors, including, but not limited to, the economic
conditions, costs of naphtha and other raw materials, demand for our products,
market conditions, and foreign exchange rates. 
About Showa Denko 
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major
manufacturer and marketer of chemical products serving a wide range of fields
ranging from heavy industry to the electronic and computer industries. SDK
makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods),
electronic equipment (hard disks for computers) and inorganic materials
(ceramics, carbons). The company has overseas operations and a joint venture
with Netherlands-based Montell and Nippon Petrochemicals to make and market
polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation
to strengthen the high-value-added fabricated aluminum products operations, and
is today developing next-generation optical communications-use wafers. For more
information, please visit www.sdk.co.jp . 
Contact: 
Showa Denko (SDK)
IR Office,
Finance & Accounting Department
Tel: +81-3-5470-3323 
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