Denka Co. shares fell sharply Monday morning after the Japanese chemical company cut its fiscal-year guidance, citing a sharp fall in demand for its products amid a global economic slowdown.
The shares were recently 15% lower at 2,564 yen after falling as much as 16% earlier.
Denka said Friday after market close that it expected net profit to drop 54% from a year earlier to Y12.00 billion ($93.9 million) for the fiscal year ending March, down from its previous forecast of Y18.50 billion.
The chemical company lowered its fiscal-year revenue estimate to Y410.00 billion from its previous view of Y445.00 billion.
Denka said demand for its electronics products and chloroprene rubber is falling sharply due to a sharp slowdown in the global economy.
Denka also lowered its fiscal-year dividend projection to Y100.00 per share from its previous forecast of Y145.00 per share owing to the earnings deterioration.