Resonac (Formerly Showa Denko): Fiscal 1Q23 Financial Results

On March 2022, Showa Denko KK announced that the board of directors has decided that the name of the new company will be Resonac Corporation, which is planned to be organized in January 2023 as a result of integration of SDK and Showa Denko Materials Co Ltd (SDMC), a member company of the Showa Denko Group.

The new firm name was created as a combination of 2 English words, namely, the word of “RESONATE” and “C” as the first letter of CHEMISTRY.

Consolidated sales for 1FQ23 decreased to ¥298,919 million, down 2.9% from 1FQ22.

In 1QF23, compared to 4FQ22, net sales saw a decrease by ¥9.1 billion. Weakened demand for HD media and semiconductor materials lead to a decrease of sales in Semiconductor and Electronic Materials segment, surpassing an increase of sales in Chemical segment, brought about by higher cost of raw material and utilities.

Operating income fell by ¥225 billion compared to 1FQ22 partly due to loss of disposal of inventories and inventory write-downs in HD media business, which continued to suffer from diminished demand.

HD media sales decreased significantly due to continued weak demand from data centers.

For FY23, the company estimates ¥220 billion in an operating loss, a significant decrease by ¥281.7 billion compared to FY22.