Earnings Fall In Japan

Abstract

Japan’s economy expanded at an annualized rate of 3.5% in the first three months of 2013, but its chemical industry did not benefit from this growth. For the fiscal year that ended on March 31, most of Japan’s large chemical companies reported earnings lower than in the previous fiscal year or even losses. Several companies also reported lower year-over-year sales, a drop they attributed to sluggish demand both in Japan and abroad. The drop happened despite a weakening in the value of the yen, which can bolster the competitiveness of Japanese-made products in the international market. The yen was worth 14% less on March 31 than it was a year ago. Among the large firms, Sumitomo Chemical fared the worst, posting a net loss of $542 million compared with a profit of $59 million a year earlier. The company explained that it decreased by $211 million the value of production ...