TOKYO—Denka Corp. has revised down its sales and profit forecast for the year ending March 31, on lower chloroprene rubber production and weak demand.
In a Feb. 7 statement, the Japan-based materials supplier said it now expects total sales to come in at $2.5 million (Yen 380 billion), down 5 percent compared to earlier estimates.
Operating profit is to come in at $73 million, down 42 percent compared to the previous estimate of $126 million.
The downward revision, Denka said, was due to "lower-than-expected" demand for mainstay products such as electronics and advanced products.
In addition, Denka said the suspension of chloroprene rubber production, due to the Noto Peninsula earthquake on Jan. 1, impacted results.
As a result, the company said "sales, operating income, and ordinary income are expected to be significantly lower than the previously announced forecasts."
