Resonac Holdings is considering a partial spin-off of クラサス・ケミカル, with indications that it is expected to be excluded from the consolidated accounts. Reports have described how this has changed the revenue and earnings outlook.
Resonac Holdings has explained developments concerning a proposed partial spin-off of クラサス・ケミカル. At present, クラサス is expected to be excluded from the consolidated accounts, which could affect the investment case for the company. The article discusses the connection between the spin-off and the execution and improved profitability of the company’s core semiconductor and electronic materials businesses.
In an earnings forecast revision dated 6 August, the company lowered its full-year revenue forecast to ¥1,165,000 million, assuming that クラサス would be excluded from consolidation. At the same time, it raised its operating profit forecast to ¥160,000 million and its net income forecast to ¥112,500 million, citing increased sales volumes of semiconductor and electronic materials. This suggests that the separation is linked to a phase of margin improvement in the continuing businesses.
At the same time, risks remain, including substantial debt, capital-intensive assets and pressure on cash flow arising from the business restructuring. Investors are therefore said to need to assess carefully how much the portfolio reorganization actually contributes to improved profitability. The article calls for a long-term perspective in evaluating the plan.