Sekisui Chemical Co ( (SKSUF) ) has released its Q2 earnings. Here is a breakdown of the information Sekisui Chemical Co presented to its investors.
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Sekisui Chemical Co., Ltd. is a diversified Japanese company listed on the Tokyo Stock Exchange, primarily engaged in the production of high-performance plastics, housing, urban infrastructure, and environmental products, with a notable presence in the medical sector.
In its latest earnings report for the first half of fiscal 2025, Sekisui Chemical Co. reported a slight increase in net sales, reaching a record high for the period, despite challenges in the domestic housing market and global automobile production. However, the company faced a decline in operating profit due to weaker than expected conditions in the EV market and one-time expenses in Europe.
Key financial highlights include a marginal increase in net sales by 0.1% to 629.7 billion yen, while operating profit decreased by 6.7% to 45.4 billion yen. Ordinary profit saw a modest rise of 1.7% to 48.9 billion yen, but profit attributable to owners of the parent fell by 26.1% to 31.7 billion yen. The Housing Company segment showed resilience with a 2.0% increase in net sales and an 11.9% rise in operating profit, driven by higher unit prices and increased orders in the Housing Renovation business.
The Urban Infrastructure and Environmental Products Company experienced a decline in both sales and profits due to sluggish markets and operational challenges. Meanwhile, the High Performance Plastics Company saw higher sales but a decrease in operating profit due to one-time expenses. The Medical Business faced a significant drop in sales and profit, attributed to declining demand for diagnostic kits and challenging market conditions in the U.S. and China.
Looking ahead, Sekisui Chemical Co. has revised its full-year forecast downward, reflecting lower than anticipated market conditions. The company remains focused on leveraging its diverse portfolio and strategic initiatives to navigate the challenging economic environment and drive future growth.