Mitsubishi Chemical Corporation Q1 Report 2024
Performance Overview
In the business environment of the consolidated first quarter (April 1, 2023 – June 30, 2023; same hereafter) of the Mitsubishi Chemical Group (the MCG Group), while social activities and the flow of people in Japan increased while living with COVID-19 and the Japanese economy remained on a moderate recovery path, outlook has been uncertain overseas due to downside risks to the economy from monetary tightening, especially in Europe and the United States and concerns over price hikes.
Against this backdrop, sales revenue in the consolidated quarter under review (April 1, 2023 – June 30, 2023; same hereafter) decreased ¥45.3 billion, or 4.1%, to ¥1,061.2 billion. In the profit front, core operating income fell ¥21.3 billion, or 29.5%, to ¥50.8 billion. Operating income was up ¥1.7 billion, or 2.6%, to ¥69.7 billion. Income before taxes decreased ¥6.3 billion, or 8.3%, to ¥68.8 billion. And net income attributable to owners of the parent dropped ¥2.4 billion, or 5.2% to ¥42.5 billion.
Specialty Materials Segment, Performance Products Domain
In comparison with the same quarter in the previous consolidated fiscal year, sales revenue decreased ¥25.8 billion, to ¥290.9 billion and core operating income declined ¥13.1 billion, to ¥9.2 billion.
In polymers and compounds, sales revenue decreased due to a decline in demand for electronics and other applications in addition to the effect of partial transfer of the MCG Group’s stakes in Mitsubishi Engineering-Plastics Corporation, despite the efforts to correct selling prices.
In films and molding materials, sales revenue decreased due to a decline in overall sales volume reflecting slowdown in demand for electronics and other applications, despite the efforts to correct selling prices.
In advanced solutions, sales revenue dropped as a result of a decline in sales volume mainly in the semiconductorrelated business, despite the efforts to correct selling prices.
Core operating income in this segment decreased significantly year on year due to a decline in overall demand, despite a progress made in passing on raw material cost to selling prices.
