Sumitomo Chemical has raised its forecast for consolidated net income for the fiscal year ending March 2027 to ¥90 billion. Sales of semiconductor materials driven by AI demand are expected to contribute, while improved petrochemical market conditions are also expected to boost earnings. The company also announced plans to raise the year-end dividend to ¥9 and the annual dividend to ¥17.
Sumitomo Chemical announced that consolidated net income for the fiscal year ending March 2027 is expected to rise 48% year on year to ¥90 billion. Sales of semiconductor materials are expected to exceed the previous forecast amid strong AI demand, while improved petrochemical market conditions are also cited as a factor supporting earnings.
Revenue is expected to increase 7% year on year to ¥2.49 trillion. In response, the company indicated that it would pay a year-end dividend of ¥9 and raise the annual dividend from ¥14 in the previous fiscal year to ¥17.
While rising AI-related demand and firm conditions in the semiconductor materials market are expected to support earnings, improved conditions in the petrochemical segment are also expected to provide support. Trends in emerging demand may affect specific earnings assumptions going forward.