Sekisui Chemical Reports Mixed First Half of 2024

Sekisui Chemical Co ( (SKSUF) ) has released its Q2 earnings. Here is a breakdown of the information Sekisui Chemical Co presented to its investors.

Sekisui Chemical Co., Ltd., listed on the Tokyo Stock Exchange, operates in the chemical industry, specializing in high-performance plastics and housing-related products, along with a diverse range of environmental and infrastructure solutions.

In its latest earnings report, Sekisui Chemical demonstrated a mixed performance for the first half of fiscal 2024. Despite challenges in its domestic housing market, the company saw record high net sales and operating profit due to strong demand in electronics and high-value products in international markets, particularly in the U.S.

The company’s net sales for the first half of fiscal 2024 increased by 2.9% year-on-year to 629 billion yen, while operating profit surged by 18.4% to 48.7 billion yen. However, ordinary profit and profit attributable to owners of the parent experienced declines of 6.6% and 3.4%, respectively, mainly due to foreign exchange losses. The Housing Renovation and Real Estate businesses saw an increase in sales, counterbalancing the decline in new housing orders. Meanwhile, the High Performance Plastics segment thrived on increased semiconductor demand and favorable foreign exchange rates.

Looking ahead, Sekisui Chemical remains cautiously optimistic, revising its full-year forecast to reflect expected continued strength in high-value product sales and profitability measures across its segments. However, potential currency fluctuations, particularly the appreciation of the yen, could impact future results.