Sumitomo Bakelite sees robust growth, raises dividend forecast

Sumitomo Bakelite reported a 2.2% year-on-year increase in revenue to 156,528 million yen for the second quarter of FY2025, with business profit rising 8.2% to 17,118 million yen and operating profit up 5.1% to 16,462 million yen. Profit attributable to owners of the parent also grew by 4.3% to 13,291 million yen. This growth was primarily fueled by robust demand in semiconductor materials, particularly in China and for AI-related applications, offsetting sluggishness in automotive mechanical components.

The company's full-year forecast for FY2025 remains unchanged from its May 12, 2025 announcement, projecting revenue of 310,000 million yen and business profit of 32,500 million yen. In line with strong performance, Sumitomo Bakelite increased its annual dividend forecast for FY2025 to 105.00 yen per share, up 10 yen from FY2024, comprising an interim dividend of 50.00 yen and a year-end dividend of 55.00 yen.

Strategic initiatives in High Performance Plastics, including structural reforms in North America, profitability improvements in aircraft components for Europe, and increased sales in power module and EV battery materials, contributed to the positive outlook. Quality of Life Products also saw steady growth, particularly in pharmaceutical packaging for generics and medical devices.