Sekisui Chemical expects to post annual net loss

Japanese Sekisui Chemical Co. announced at the beginning of September that it now expects to post a group net loss for the year through March because of an affiliate“s profit warning.
The core compa…

Japanese Sekisui Chemical Co. announced at the beginning of September that it now expects to post a group net loss for the year through March because of an affiliate“s profit warning. The core company of the Sekisui group said its group results will be squeezed by losses expected to be posted at Sekisui House Ltd. Citing poor housing sales and pension-related losses, the affiliate said Tuesday it now expects to post a group net loss of JPY 6.5 billion yen for its year ending in January, a deterioration from its original projection of a JPY 27.5 billion net profit. Sekisui Chemical also said it forecasts a group net loss of JPY 3.3 billion for this fiscal year on pretax profit of JPY 2.7 billion, down from the JPY 4 billion net profit and JPY 10 billion pretax profit originally projected. Its group sales outlook remained at JPY 920 billion. The new forecasts are still better than results in the previous fiscal year, when the company posted a group net loss of JPY 48.63 billion on sales of JPY 913.68 billion and a pretax profit of JPY 309 million. The results were pressured last year because of hefty costs related to restructuring and the write-off of pension-fund shortfalls. For the six-month period ending Sept. 30, Sekisui Chemical said it intended to post a group net loss of JPY 11 billion on sales of JPY 440 billion and a pretax loss of JPY 10 billion.