Home / Knowledge / News / Textiles / Mitsubishi Chemical net sales down 4.9% in Q3 FY19

Mitsubishi Chemical net sales down 4.9% in Q3 FY19

07
Feb '20
Pic: Shutterstock
Pic: Shutterstock
Mitsubishi Chemical Holdings Corporation reported decrease in net sales by 4.9 per cent to ¥2,730.8 billion in third quarter (Q3) FY19 that ended on December 31, 2019, compared to Q3 FY18 ¥2,870.4 billion. Core operating income dropped 31.6 per cent to ¥181 billion. Net income attributable to owners of the parent fell 54 per cent to ¥76.3 billion.
 
As a result of goodwill impairment charges relating to the pharmaceutical formulation materials business in the health care domain, operating income declined 40.1 per cent to ¥160.6 billion.
 
The company reported that business in Q3 was uncertain largely due to supply and demand easing for some products, centered on semiconductor and automotive applications, owing to the impact of US-China trade friction.
 
Performance products sales revenue decreased ¥48.7 billion to ¥821.1 billion. Functional products sales revenue declined. The decline was despite higher sales volumes in environment and living solutions and reflected lower sales volumes in high-performance engineering plastics and other products for advanced moldings and composites, owing to weakened demand, principally in semiconductor and automotive applications.
 
In response to rising global demand for food packaging materials, the company in April 2019, decided to increase the annual production capacity of soarnol ethylene vinyl alcohol copolymer resin of consolidated subsidiary Noltex llc by 3,000 metric tons to 41,000 metric tons. 
 
Chemicals sales revenue decreased ¥149.4 billion to ¥826.0 billion. In petrochemicals, while sales volumes increased because of a smaller impact from scheduled maintenance and repairs at the ethylene production facility, prices declined owing mainly to lower raw materials costs and other factors.
 
Japan Polypropylene Corporation, a consolidated subsidiary of Mitsubishi Chemical Corporation, in July 2019 decided to halt production at one polypropylene line at its Kashima Plant, effective April 2020. This move is designed to reinforce the production infrastructure and rationalise amid the construction of a new polypropylene line at the Goi Plant as part of structural reforms to bolster profitability.
 
Industrial gases sales revenue rose ¥115.9 billion to ¥628.3 billion. In industrial gases, sales revenue and core operating income increased, due to including the performance of the European and US businesses acquired in the second half of the previous fiscal year.
 
Health care sales revenue declined ¥38.5 billion to ¥321.9 billion. In pharmaceuticals, sales revenue and core operating income decreased, primarily attributable to lower royalty revenues, despite higher sales volumes in mainly priority products in domestic ethical pharmaceuticals.
 
Others sales revenue decreased ¥18.9 billion, to ¥133.5 billion. 
 
The company has revised the forecast for FY20 ending on March 31, 2020. Sales revenue and core operating income are expected to be lower because of market conditions of MMA, carbon, and other Chemicals segment products will likely be poor, while it is also projected that adjustments will continue for the foreseeable future in demand for products in optical applications for displays and semiconductor and automotive applications, the company reported.

Fibre2Fashion News Desk (JL)


Must ReadView All

Pic: Shutterstock

Textiles | On 17th Feb 2020

Vietnam textile firms urged to source from Malaysia, India

Pham Xuan Hong, president of Ho Chi Minh City’s textile association,...

Pic: Shutterstock

Textiles | On 17th Feb 2020

Myanmar to initiate measures to improve trade strategies

Myanmar will take measures to raise overseas demand for indigenous...

Pic: PaCT

Apparel/Garments | On 17th Feb 2020

IFC portal to monitor resource usage in Bangla RMG sector

The International Finance Corporation (IFC) has developed PaCT...

Interviews View All

Dharmendra Shah, Ozone PB Spintex Limited

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Karan Suratwala, Key Textile Accessories Private Limited

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Zafer Demirel,

Zafer Demirel

Turkey's Canlar Mechatronics is a leading designer and manufacturer of...

Abhishek Ralli,

Abhishek Ralli

Guide group is a government recognised manufacturing house engaged in the...

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Chunyi Zhi, City University of Hong Kong

Chunyi Zhi
City University of Hong Kong

<div><b>Chunyi Zhi</b>, associate professor in the Department of Materials ...

Kevin Nelson, TissueGen

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rajesh Pratap Singh, Rajesh Pratap Singh

Rajesh Pratap Singh
Rajesh Pratap Singh

<div>Ace fashion designer <b>Rajesh Pratap Singh</b> has used Tencel to...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search