TOKYO—Shin-Etsu Chemical's Functional Materials unit has reported a 4.4-percent year-on-year increase in operating income for its fiscal first quarter to $177.8 million (Yen 26.7 billion).
Earnings at the division, which includes the Japanese group's silicones operations, increased despite a 1.3-percent decline in sales to $710.6 million.
Over the three months to June 30, Functional Materials was impacted by inventory adjustments and slowdown in commodity markets as "the slump in the Chinese economy continued."
To offset these effects, the group said it focused on increasing sales of "highly functional" product groups as well as introducing a price increase for silicone materials.
Other measures during the quarter included "significant and focused promotion of higher silicone product functionality and raising of the level of environmental impact reduction."
Shin-Etsu said it also carried out "continuous development of highly functional products for automotive, personal care and healthcare applications."
Additionally, the group initiated an investment of about $14 million to "strengthen the silicone business in China," according to its first quarter report issued July 26.
