Showa Denko (SDK) Announces Revised Performance Forecast for 2009

Tokyo, Feb 08, 2010 (JCN Newswire via COMTEX) -- Showa Denko K.K. (SDK) has revised its earlier forecast of consolidated business results for 2009 announced on December 8, 2009, in view of the recent business trends.

Revised consolidated performance forecast for Jan. 1 - Dec. 31, 2009

                                                     (Millions of yen)
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                         Earlier    Revised
                        Forecast   Forecast                      2008
                       (12/08/09)  (2/08/10)   Diff.     %    Results
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Net sales                680,000    678,200  -1,800  -0.3%  1,003,876
Operating income          -8,000     -5,000   3,000    --      26,792
Ordinary income          -26,500    -22,300   4,200    --       9,793
Net income               -41,500    -38,000   3,500    --       2,451
Net income per share      -32.16     -29.45      --    --        1.96
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Reasons for the revision of consolidated performance forecast

In the fourth quarter (October - December), shipment volumes increased due to the increase in demand from customer industries. We accordingly expect improvements in our operating income, ordinary income and net income as compared with the earlier forecast.

Profit levels will improve mainly in the Electronics, Aluminum & Other, and Petrochemicals segments. In the Electronics segment, in particular, shipment volumes of hard disk media will be higher than expectations, reflecting brisk demand for PCs. The Aluminum & Other segment will also record better results, because shipment volumes to the automobile and other customer industries are gradually improving, and our own cost reduction efforts are bearing fruit.

As a result, operating income for the fourth quarter is expected to reach 11.2 billion yen, compared with 8.2 billion yen in the earlier forecast.

* The above forecast is based on the information available as of today and assumptions as of today regarding risk factors that could affect our future performance. Actual results may differ materially from the forecast due to a variety of risk factors, including, but not limited to, the economic conditions, costs of naphtha and other raw materials, demand for our products, market conditions, and foreign exchange rates.

About Showa Denko

Showa Denko K.K. ('SDK'; TSE: 4004, US: SHWDF) is a major manufacturer and marketer of chemical products serving a wide range of fields ranging from heavy industry to the electronic and computer industries. SDK makes petrochemicals (ethylene, propylene), aluminum products (ingots, rods), electronic equipment (hard disks for computers) and inorganic materials (ceramics, carbons). The company has overseas operations and a joint venture with Netherlands-based Montell and Nippon Petrochemicals to make and market polypropylenes. In March 2001, SDK merged with Showa Denko Aluminum Corporation to strengthen the high-value-added fabricated aluminum products operations, and is today developing next-generation optical communications-use wafers. For more information, please visit www.sdk.co.jp .

Contact:

Showa Denko K.K. (SDK)
IR & PR Office
Phone:  +81-3-5470-3235