Asahi, Shin-Etsu Warn On Profits

Japan's Asahi Kasei expects to post a net profit of $70 million on sales of $15.6 billion in the fiscal year that just ended on March 31. The new profit forecast is 50% lower than the estimate the company released as recently as Feb. 9. Asahi says Chinese demand contracted more than expected. It will also incur restructuring expenses because of last month's decision to stop producing polyester in Japan. Meanwhile, Shin-Etsu Chemical expects to post a net profit in the latest fiscal year of $1.6 billion, or 13% lower than in the previous year. The world's largest producer of polyvinyl chloride and silicon wafers, Shin-Etsu has posted record net profit every year for the past 12 years.