Showa Denko K.K. (SDK), involved in the production and supply of specialty gases and high grade ammonia gas, has declared an 11.6% increase in its consolidated operating income for the 12 months of 2007 from January to December, and revealed it is targeting sustainable growth in the future months and years ahead.
Consolidated operating income rose to Y 76.671m, up 11.9% while ordinary income was up 4.3%, to reach Y59.989m – despite increases in non-operating expenses. Net income increased 14.7%, to Y33.066m, due partly to the fall in extraordinary losses.
Despite a somewhat tumeltous year, the Japanese economy continued its gradual recovery owing to steady capital spending against the background of strong corporate earnings and increases in exports to Asian countries. Similarly, under the circumstances the Showa Denko Group implemented its consolidated business plan, the Passion Project, with a view to laying the groundwork for long-term sustainable growth. The group took various steps to expand growth businesses, while continuing its structural reform and cost reduction efforts.
The company reports that production of liquefied ammonia was slightly down, though sales of commodity industrial gases such as oxygen, nitrogen and hydrogen also decreased. As a result, the chemicals segment’s sales rose 7.0%, to Y84.709m, and operating income jumped 45.5%, to Y7.431m. Sales of semiconductor-processing specialty gases decreased too, as the shipment volumes of LCD-panel cleaning agents fell and as a result, the electronics segment’s sales increased 21.4%, to Y201.013m.
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