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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

Copyright 2013 JCN Newswire. All rights reserved. www.japancorp.net

Provider ID: 00027139

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