|By JCN Newswire||
|December 5, 2012 02:21 AM EST||
1. Estimated business results in 2012 and current business environment
(1) Estimated business results in 2012 (already announced on November 1)
The Japanese economy is facing a difficult situation due to declining export and production, as it is influenced by slowdown of global economy (especially in Europe) and the continuing appreciation of the yen. SDK's Electronics segment, driven by the HD media business, is expected to record higher sales and operating income compared with 2011 results. However, other segments will record lower sales and operating income. As a result, SDK's consolidated net sales for 2012 will amount to JPY 750 billion, a decline of approximately JPY 100 billion. Consolidated operating income will be JPY 32 billion, down about JPY 15 billion.
(2) Current business environment and performance forecast for 2013
According to IMF's announcement in October, the influence of stagnant economies in industrialized countries (especially in Europe) and slowdown of emerging economies will continue. IMF predicts a slow recovery of the world economy in 2013. Growth rate of the Japanese economy in 2013 will be lower than that of 2012, reflecting the decline in reconstruction demand.
In view of such economic conditions and based on the assumptions described below, SDK expects to record consolidated net sales of JPY 800 billion, operating income of JPY 35 billion, and net income of JPY 15 billion, a slight improvement over the estimated results in 2012. SDK will formally announce its performance forecast for 2013 in February 2013.
Basic assumptions for 2013 -
Exchange rate: JPY 80 per US dollar
Japanese economy: Remain at the current level in the first half, and recover slowly in the second half of the year
Demand in China: Slow recovery
Electric power cost: Rising
2. Business strategy for 2013
Under its medium-term consolidated business plan PEGASUS, SDK is aiming to become "Unique Chemical Company with Strong Presence on the Global Market." SDK will continue to follow the basic strategy under PEGASUS in view of the steady performance of the HD media business and expected medium- to long-term growth of the graphite electrode industry. (The HD media and graphite electrode businesses are serving as the "wings" of PEGASUS.) At the same time, we will review the planned business portfolio under PEGASUS to cope with changes in business environment and in laws and regulations at home and abroad. Thus, we will redesign our existing businesses.
In 2013, we will focus on accelerating globalization and improving the profitability of domestic operations. As for globalization, we will further expand existing businesses in China and establish new sites in the growing ASEAN region, strengthening our supply chains. In Japan, we will improve the profitability of our businesses in petrochemicals, chemicals, aluminum, and rare earth magnetic alloys by carrying out structural reform.
In accordance with that strategy, SDK will change its organization early next year to ensure speedy decision making, efficient operation, and quick commercialization of new products based on newly developed technologies. The existing systems of business sectors and headquarters will be abolished. Business divisions will be placed under the direct control of CEO. Corporate Officers in charge of respective business divisions will support CEO, constituting a strong top-management team. Thus, all businesses will be managed to ensure optimization of the performance of the entire Group.
3. Strategy by segment
1. HD media
Demand for PCs is currently stagnant, being influenced by the growth of smartphones and tablet PCs as well as the slowdown of emerging economies. This situation is expected to continue in 2013. The shipment volumes of hard disk drives in 2013 will total around 590 million units (at the same level as in 2012) due to stagnant PC demand. In 2014 and after, however, the shipment volumes will resume growth of 3-5% a year, due to the progress in cloud computing and recovery in the world economy.
SDK is taking the lead in the supply of high-storage-capacity HD media, and will continue to launch HD media with the highest capacity ahead of competitors. SDK has commercialized the world's first sixth-generation HD media based on perpendicular magnetic recording technology (2.5-inch 500 GB media; having the world's highest capacity for this size as of December 5, 2102). In the fist half of 2013, SDK will launch the seventh-generation PMR media (2.5-inch 650 GB). Development of the next-generation HD media is under way.
2. Rare earths
Due to the drastic changes in raw material prices in China, we now need to substantially reform our rare earth magnetic alloys business. As for dysprosium (very rare in supply, and China is virtually the only source), SDK is developing new technology that enables reduction in the use of dysprosium. By meeting customer requirements through such development effort, SDK will rehabilitate its rare earth magnetic alloys business. Our existing sites in China will expand sales to customers in the growing rare earth magnet industry in that country.
As already announced, we transferred 70% of shares in our gallium-nitride (GaN) LED chip business subsidiary TS Opto Co., Ltd., to Toyoda Gosei Co., Ltd. on December 1, making the business a joint venture with Toyoda Gosei. We will further expand the business under the leadership of Toyoda Gosei, which is a leading company in this field.
SDK will continue to promote its own business in LED chips to be used in plant growth facilities, as part of its high-brightness aluminum-gallium-indium-phosphide (AlGaInP) LED operations.
1. Graphite electrodes
Electric steel production is showing no growth at the moment due to stagnation of the European economy and the slowdown of emerging economies. However, electric steel production will grow in the future due to increased supply of iron scrap following replacements of buildings and bridges in emerging countries and purchases of new cars.
SDK has so far produced high-end graphite electrodes at its Omachi Plant in Japan and at Showa Denko Carbon, Inc., of the United States, to serve mainly the markets in industrialized countries. However, SDK decided this year to invest in a graphite electrode manufacturing company in China and make it a subsidiary. SDK will expand product lineup for volume zone markets.
Demand for chemical alumina is expected to grow in the ASEAN region for such applications as the cleaning of drinking water, filler for resins, and electronic materials. SDK is building a chemical alumina plant in Indonesia as a joint venture with a local company. The plant will start a trial run in 2014 and full-scale operations in 2015. With the start-up of the new plant in Indonesia, SDK will terminate its chemical alumina production at the Yokohama Plant.
The petrochemicals market remains stagnant due to slow recovery of demand in China and the slowdown of the global economy. The current situation will continue in the first half of 2013. Under the circumstances, our ethylene plant at the Oita Complex will continue operation at the rate of 90% in 2013.
To strengthen the competitive position of the Oita Complex, we have been strengthening cooperation between upstream and downstream operations. As part of that effort, SDK established NS Styrene Monomer Co., Ltd. as a joint venture with Nippon Steel & Sumikin Chemicals Co., Ltd. in 2011. Renewal of the JV's styrene monomer plant will be completed in the middle of 2013.
Furthermore, to increase the value of cracker products, we are developing a new butadiene manufacturing process based on acetaldehyde.
In the area of basic chemicals of the Chemicals segment, demand for acrylonitrile remains low. To cope with that situation, SDK will expand its business in acrylonitrile derivatives. As for chloroprene synthetic rubber business, we will expand sales of high-value grades.
Also in the Chemicals segment, SDK will promote globalization in high-value-added businesses such as high-performance automotive materials (BMC), high-purity gases for semiconductor processing (NH3, N2O, HBr, etc.), and separation/refining. In addition to the separation business centering on ShodexTM HPLC columns, SDK has decided to enter the purification resins market through investment in BIA Separations, a venture company in Europe.
The Aluminum segment is now a cluster of businesses with leading positions on the global market, including operations in high-purity aluminum foils for capacitors, ShoticTM aluminum forged materials, and aluminum cylinders for laser beam printers. SDK will continue to strengthen these operations.
In the high-purity aluminum foils business, we are expanding our refining capacity at the Sakai Plant and building a new processing site in China, as announced earlier. In the ShoticTM business, we decided to build a new aluminum casting plant in Malaysia. Using the new plant and the existing forging plant in Singapore, we will meet growing demand for automotive forged aluminum parts in the ASEAN region
(6) New Growth businesses
We will expand our lithium ion battery (LIB) materials business. The business is based on our carbon and aluminum technologies, which are areas of our strength. Although there is some delay in the start-up of our target market for large LIBs for electric vehicles, the market is expected to grow rapidly in the medium-term point of view.
We will expand business in market segments where we have technical advantages, focusing on such areas as anode material, additive in cathodes and anodes, and aluminum laminated films for packaging.
About Showa Denko
Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .
Source: Showa Denko
Showa Denko K.K. (SDK) IR & PR Office, Showa Denko Tel: +81-3-5470-3235
Copyright 2012 JCN Newswire. All rights reserved. www.japancorp.net
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Sep. 29, 2016 04:00 PM EDT Reads: 2,359
If you had a chance to enter on the ground level of the largest e-commerce market in the world – would you? China is the world’s most populated country with the second largest economy and the world’s fastest growing market. It is estimated that by 2018 the Chinese market will be reaching over $30 billion in gaming revenue alone. Admittedly for a foreign company, doing business in China can be challenging. Often changing laws, administrative regulations and the often inscrutable Chinese Interne...
Sep. 29, 2016 04:00 PM EDT Reads: 435
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
Sep. 29, 2016 03:45 PM EDT Reads: 2,174
In his session at @ThingsExpo, Kausik Sridharabalan, founder and CTO of Pulzze Systems, Inc., will focus on key challenges in building an Internet of Things solution infrastructure. He will shed light on efficient ways of defining interactions within IoT solutions, leading to cost and time reduction. He will also introduce ways to handle data and how one can develop IoT solutions that are lean, flexible and configurable, thus making IoT infrastructure agile and scalable.
Sep. 29, 2016 03:30 PM EDT Reads: 1,611
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 29, 2016 03:15 PM EDT Reads: 1,767
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2016 Silicon Valley. The 6thInternet of @ThingsExpo will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Sep. 29, 2016 03:00 PM EDT Reads: 2,758
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
Sep. 29, 2016 03:00 PM EDT Reads: 2,957
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 29, 2016 02:00 PM EDT Reads: 3,937
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 29, 2016 02:00 PM EDT Reads: 1,144
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 29, 2016 02:00 PM EDT Reads: 3,597
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 29, 2016 02:00 PM EDT Reads: 4,178
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 29, 2016 01:45 PM EDT Reads: 1,116
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Sep. 29, 2016 01:30 PM EDT Reads: 4,452
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 29, 2016 01:15 PM EDT Reads: 327
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 29, 2016 01:15 PM EDT Reads: 2,923
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 29, 2016 01:15 PM EDT Reads: 3,018
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 29, 2016 01:00 PM EDT Reads: 1,699
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Sep. 29, 2016 12:45 PM EDT Reads: 5,134
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 29, 2016 12:30 PM EDT Reads: 1,749
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Sep. 29, 2016 12:00 PM EDT Reads: 472