Japan: Sumitomo Osaka Cement operating profit seen rising

Japan-based Sumitomo Osaka Cement's group operating profit is expected to jump 13 per cent for the April-September half on rising sales and declining coal prices, according to a Nikkei earnings preview report.

The profit of around JPY10bn (US$82.1m) would be a record for the half, surpassing guidance of JPY9.1bn. Sales likely grew three per cent to around JPY115bn, edging above guidance of JPY113bn, according to the newspaper.

The report said domestic demand for cement used in public works was stagnant during the half, but sales to elsewhere in Asia were strong. Shipments of ready-mix concrete increased, driven largely by continuing massive commercial redevelopment projects in the area surrounding Tokyo. Sales also were brisk for non-cement products, including ingredients for sunscreen and antifoulant paint used in plumbing.

Higher shipping costs in the year-earlier period due to problems with the Japanese company's storage facilities returned to normal levels, thereby improving profitability.