|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
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
Nov. 24, 2015 06:00 PM EST Reads: 363
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now all corporate assets – people, objects, and spaces – can share information about themselves and thei...
Nov. 24, 2015 05:30 PM EST Reads: 136
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...
Nov. 24, 2015 04:30 PM EST Reads: 283
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
Nov. 24, 2015 03:30 PM EST Reads: 459
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
Nov. 24, 2015 03:30 PM EST Reads: 506
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at Built.io, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Nov. 24, 2015 03:00 PM EST Reads: 282
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
Nov. 24, 2015 02:00 PM EST Reads: 416
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Nov. 24, 2015 01:45 PM EST Reads: 404
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
Nov. 24, 2015 01:45 PM EST Reads: 334
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
Nov. 24, 2015 01:30 PM EST Reads: 487
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Nov. 24, 2015 01:30 PM EST
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th 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 cha...
Nov. 24, 2015 01:30 PM EST Reads: 480
We are rapidly moving to a brave new world of interconnected smart homes, cars, offices and factories known as the Internet of Things (IoT). Sensors and monitoring devices will touch every part of our lives. Let's take a closer look at the Internet of Things. The Internet of Things is a worldwide network of objects and devices connected to the Internet. They are electronics, sensors, software and more. These objects connect to the Internet and can be controlled remotely via apps and programs. Because they can be accessed via the Internet, these devices create a tremendous opportunity to inte...
Nov. 24, 2015 01:15 PM EST Reads: 478
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Nov. 24, 2015 01:00 PM EST Reads: 491
SYS-CON Events announced today that Kintone has been named "Bronze Sponsor" of SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
Nov. 24, 2015 12:00 PM EST Reads: 564
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
Nov. 24, 2015 12:00 PM EST Reads: 332
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
Nov. 24, 2015 11:00 AM EST Reads: 349
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
Nov. 24, 2015 08:00 AM EST Reads: 258
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
Nov. 24, 2015 06:45 AM EST Reads: 334
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Nov. 24, 2015 06:15 AM EST Reads: 239