Palantir shares slip premarket despite posting record revenue in third quarter
Investing.com -- Sumitomo Electric reported first-half operating profit of ¥153.0 billion, up 28.2% year-over-year and significantly exceeding the consensus estimate of ¥128.5 billion. The company achieved record first-half results in sales, operating profit, and operating margin.
The information and communications business delivered substantial profit growth, driven by increased sales of optical devices and wiring products amid strong demand for generative AI applications. Sales of optical fiber, cable, and related devices rose 28% quarter-over-quarter.
On Wednesday, Sumitomo Electric announced it had acquired Sumitomo Riko, which manufactures automotive anti-vibration rubber products, as a wholly owned subsidiary for approximately ¥130 billion. The company is also selling Sumitomo Densetsu, its electrical work division, to Daiwa House. These transactions will eliminate parent-subsidiary listings.
Following the strong performance, Sumitomo Electric raised its fiscal year 2026 operating profit target from ¥295.0 billion to ¥340.0 billion, surpassing the consensus forecast of ¥315.0 billion. The revised guidance includes increases across all business segments: ¥8.0 billion for environment and energy, ¥10.0 billion for information and communications, ¥2.0 billion for automotive, ¥3.0 billion for electronics, and ¥2.0 billion for industrial materials and others.
The company plans to pay a dividend of ¥118 for fiscal year 2026, an increase of ¥18. Management determined this dividend by applying a roughly 40% payout ratio to normalized net profit, excluding approximately ¥70 billion in profit from the Sumitomo Densetsu sale.
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