November 16, 2006

Sumitomo Chemical records rise in sale of feed additives
 

Japan's leading chemical company Sumitomo Chemical recorded an increase in the sales of agricultural chemicals segment by JPY 4.9 billion (US$0.041 billion) over the same period last year to JPY 95.3 billion (US$ 0.80 billion).

The sales for Sumitomo's feed additives increased owing to increases in selling prices. This in turn reflected a sharp rise in the price of raw materials, and active marketing drives.

Production capacity expansion contributed to an increase in Olyset(R) net shipments. Olyset nets, a form of Long lasting Insecticidal Nets provide an improved technology for malaria prevention. It also boasts of a WHO recommendation.

Sales of agrochemicals declined because of weak demand in the Japanese market, while overseas sales of herbicides remained firm thanks to solid shipments.

The company's total operating income increased by JPY 11.6 billion (US$0.098 billion) to JPY 68.2 billion (US$0.57 billion). Of this, the agricultural chemicals registered an increase by JPY 3.9 billion (US$0.03 billion) to JPY 12.2 billion (US$0.10 billion).

A higher operating income coupled with an extraordinary gain on sale of investment securities led to a rise in company's net income.