TOKYO—Shin-Etsu Chemical Co. Ltd.'s silicones business has posted higher year-on-year operating income for the financial year ended March 31, despite a decline in sales.
Segment operating income for the fiscal year grew 5 percent to about $571 million, on 2.8 percent lower sales of $2.1 billion, Shin-Etsu said April 28.
The business, according to Shin-Etsu, saw higher profits due to an increase in sales volume and a higher ratio of functional products despite a decline in the prices of general-purpose products.
The segment contributes 15 percent to both Shin-Etsu's overall sales and profits.
In its annual statement, the Japanese materials supplier said it is carrying out "large-scale" expansion of production capacity for silicone monomers and final products at its major sites.
"(We are) striving to expand the supply system and product line-ups for customers worldwide," said the financial statement.
The company did not disclose further details of the expansion projects but said they will have a total cost of $279 million.