Mitsubishi Chemical, Shin-Etsu Chemical, Toray Chemical and other Japanese chemical companies saw poor profits in the first half of the fiscal year
Not long ago, major Japanese chemical companies have considered earnings reports for the fiscal year 2024, and for them to be less than what one expects. Recorded in the net is a skyrocketing harsh rise in price of raw materials. As such, sales gradually increased compared to that of last year because of upward price revisions and favorable market conditions.
During the first half of the fiscal year, Mitsubishi Chemical was reported to have worse earnings, though it permanently kept a forecast of full-year profit. The business said that sales increased in the last six months as market conditions showed some sign of recovery; however, they lowered their full-year sales revenue forecast on uncertain and unstable outlooks. The reported net profit of Mitsubishi Chemical fell 39.1% year-on-year to 40.9 billion yen for the first half of fiscal 2004; total sales increased by 4.3% to 2.24 trillion yen; the yearly operating profit broke down 1.4% compared to that of 136.7 billion yen. Business assessment in the six months generally confirmed some moderate recovery.
Net profit for Shin-Etsu Chemical plunged by 2.4% year-on-year to 294.1 billion yen for the first half of the fiscal year; operating profit grew by 6.2% year-on-year to 405.7 billion yen; revenues amounted to 1.2 trillion yen, an increase of 5.9%. The company stated that strength is in hard disk drive demand, while they will concentrate on sales expansion into the automotive market.
Toray's net profit for the first half of the fiscal year increased 92.6% year-on-year to 55.5 billion yen; sales increased by 7.9% to 1.2 trillion yen; operating profit was recorded at 79.5 billion yen, an impressive rise of 78.9%. In spite of slackening European markets, competition from overseas products increased; nevertheless, apparel applications remained strong. The demand for automotive applications during the first half of the fiscal year was coming back, although it suffered injury from the safety testing scandal involving Japanese automobile manufacturers and increased competition in China's electric vehicle industry.
For Mitsui Chemicals, a steep 7.2% rise in year-on-year net profit amounting to 22.2 billion yen occurred during the first half of the fiscal year; record sales of 890.4 billion yen up 8%; operating profit marks at 46 billion yen up 47.4% on year-on-year. Its elastomer business started showing weakness, sales-wise compared to that of polypropylene compounds, has not increased. Operating loss during its basic materials and green materials business narrowed as losses from the inventory pinned hopes because of rising raw material expenses including costs of naphtha.
Tosoh's sales moved up to boost honorarium a standing 8.6% over the last year due to increased production found from the strong demand. The weaker yen and new naphtha costing contributed their fair share to what rose up threshold of product sales prices. Operating profits compared-wise ladder up 47.6% year-on-year to 47.3 billion yen, thanks to the prolonged increase in sales as well as high sales in the engineering and improvement of the stock balance.
