Sumitomo Chemical Expects to Swing into Profit

Economy

Tokyo, May 15 (Jiji Press)--Sumitomo Chemical Co. said Wednesday that it expects to swing into a net profit in the year ending in March 2025 thanks to cost cuts after posting its biggest loss in the previous year.

The Japanese company projects a consolidated net profit of 20 billion yen for the current business year, compared with a loss of 311.8 billion yen in the previous year when it logged an impairment loss of some 269 billion yen mainly in its pharmaceutical and petrochemical operations.

To achieve a turnaround in the current business year, Sumitomo Chemical plans to shed 4,000 jobs, or about 10 pct of its global workforce.

Sumitomo Pharma Co., a struggling subsidiary, will reduce sales, administration, research and development expenses by more than 100 billion yen.

For its petrochemical operations that have been under pressure from weaker demand in China, Sumitomo Chemical is considering restructuring measures.

[Copyright The Jiji Press, Ltd.]

Jiji Press