Kumiai Chemical profit up 5% in Q1 FY2016

Japan's agrochemical producer Kumiai Chemical Industry likely grew group operating profit 5% on the year to around 1.2 billion yen ($10.6 million) in the November-January quarter FY2016.

Sales of Axeev, an herbicide effective in controlling weeds resistant to conventional agrochemicals, rose in the U.S. Herbicides for wet-rice farming enjoyed strong demand in India, where modern farming methods are taking root.

The Tokyo-based company's overall sales probably climbed 3% to about 16 billion yen. In Japan, sales of fungicides for vegetables and fruits picked up, but agrochemicals for wet-rice farming continued to suffer from a sales slump that began after a consumption tax hike in April 2014.

Kumiai Chemical's guidance calls for sales to climb 13% to 43.8 billion yen in the first half through April. Operating profit is forecast to rise 13% to 4 billion yen. The company will likely maintain that guidance when announcing the November-January results March 8.

Demand for agrochemicals normally peaks in February and March, when Japanese farmers begin preparing for rice planting.