Asahi expects profit-decline in 2018

Tokyo – Asahi Kasei’s chemicals segment has grown sales in the full financial year 2017, although the company expects a slower 2018.

Group annual results for the fiscal year ended 31 March, shows sales for the segment, which includes its elastomers business, up 12.1% to Yen799.3 billion (€6.1 billion).

Operating income also increased 25.7% over the full year to Yen100.1 billion, added Asahi’s report issued 11 May.

The gains were attributed partly to an increase in synthetic rubber shipments for fuel-efficient tires.

In its forecast for next year, the company expects chemicals revenue to grow 8.3% to Yen865 billion.

Operating income, however, is predicted to fall 6.5% on the back of “deteriorated terms of trade for acrylonitrile and synthetic rubber.”

Additionally, the company expects a stronger yen to negatively impact its results.