Japanese cement producer Sumitomo Osaka Cement likely will report an 11 per cent rise in operating profit of around JPY17bn (US$142m) for the nine months ended in December, as lower coal prices lift profitability.

The Nikkei reported that sales are expected to have increased by about two per cent to around JPY176bn as weaker demand in Japan amid a construction shortage was offset by exports to elsewhere in Asia.

The company's high shipping costs in the year-earlier period due to problems with its cement storage facilities returned to normal.

Sumitomo Osaka Cement operates four plants (Gifu, Ako, Kochi and Tochigi) with a total clinker and cement capacity of 8.41Mta and 10.45Mta, respectively.

Outside of cement, the Japanese company's sales were strong for lithium niobate modulators, which convert communications data, as well as for ingredients for sunscreens and parts for chip-building machines.

The full nine-month results will be released on 9 February 2016.