Sumitomo Crop Protection Sales Up on Strong Overseas Demand

Posted by Jackie Pucci|12 May 2015

Japan’s Sumitomo Chemical said its quarterly results for its crop protection business rose as demand from overseas markets offset lower shipments in Japan due to the effects of the consumption tax increase.

As a result, including the positive effect of the weaker yen, the crop protection segment’s sales increased by $295 million (¥35.4 billion) compared with the previous fiscal year, to $3.02 billion (¥362.4 billion). Operating income grew by $155.8 million (¥18.7 billion), to $474.2 million (¥56.9 billion).

Speaking about the company as a whole, Sumitomo said economic growth was “weak in China and other emerging countries and the economic recovery in Europe also remained weak, but the U.S. economy continued a solid recovery.” In Japan, despite weak consumer spending since the consumption tax increase, corporate profits recovered and capital spending and exports increased due to positive effects of the weaker yen and a steep decline in crude oil prices.