Sumitomo Chemical Raises Full-Year Forecast on Semiconductor Demand

Sumitomo Chemical significantly raised its full-year revenue and core operating profit guidance, signaling a positive shift in its financial trajectory. The company now anticipates higher earnings thanks to robust demand for semiconductor materials and strong sales of its pharmaceutical product, 'Jemtesa' in the U.S. market.

The upward revision comes as Sumitomo Chemical reported a 7.7% year-over-year increase in first-half revenue, reaching ¥1.17 trillion (approximately $7.6 billion USD). Core operating profit for the first half of fiscal year 2027 rose to ¥144.5 billion, a substantial increase from the ¥130.9 billion reported in the same period last year. This positive momentum is partially attributable to a ¥24.5 billion investment gain from a refining and petrochemical company, though the core business results demonstrate mixed performance across segments.

While the semiconductor materials division within the ICT & Mobility Solutions segment experienced increased demand, the Advanced Medical Solutions segment reported a widening core operating loss, driven by product mix and increased R&D spending. The Essential & Green Materials segment benefitted from improved performance at its equity-method affiliate, Petro Rabigh, due to favorable market conditions in the Middle East. However, the agrochemicals business saw slower recovery in overseas markets.

The company also announced an increased full-year dividend forecast of ¥17 per share, up from the previously announced ¥16 per share. This demonstrates increased confidence in its financial outlook. The revised guidance places Sumitomo Chemical in a stronger position as it navigates fluctuating commodity prices and evolving global market dynamics, even as broader macroeconomic conditions remain uncertain.