Mitsubishi Chemical Corporation Half-Year Report 2023

Performance Overview

In the business environment in the consolidated first half (April 1, 2022 – September 30, 2022; same hereafter) of the Mitsubishi Chemical Group (MCG), the global economy overall continued to modestly trend upward, as socio-economic activities return to normal. However, the outlook continues to remain murky. This mainly reflects impact from volatility in the financial and capital markets, in addition to a rise in raw material and fuel prices and supply chain disruption in tandem with geopolitical risks.

Against this backdrop, sales revenue in the consolidated quarter under review (April 1, 2022 – September 30, 2022; same hereafter) increased ¥384.7 billion, or 20.4%, to ¥2,269.8 billion. In the profit front, core operating income fell ¥33.5 billion, or 21.5%, to ¥122.6 billion. Operating income was down ¥34.7 billion, or 22.7%, to ¥118.4 billion. Income before taxes decreased ¥25.2 billion, or 17.1%, to ¥122.0 billion. And net income attributable to owners of the parent dropped ¥11.3 billion, or 13.2% to ¥73.9 billion.

Performance Products Segment, Performance Products Domain

In comparison with the same quarter in the previous consolidated fiscal year, sales revenue increased ¥67.6 billion, to ¥634.3 billion and core operating income declined ¥3.5 billion, to ¥42.3 billion.

In polymers and compounds, sales revenue climbed. Although sales volumes declined, mainly for products used in automobile applications, MCG made progress in passing on a rise in raw material costs to selling prices, and owing to contribution from forex translation impact.

In films and molding materials, sales revenue increased. Although sales decreased reflecting a rapid retreat in demand for products used in display applications, and due to the transfer of the polycrystalline alumina fiber business in March 2022, there was positive impact mainly from a correction to selling prices accompanying a rise in raw material costs as well as strong trends in demand for molding materials.

In advanced solutions, sales revenue grew underpinned chiefly by a correction to selling prices in tandem with a rise in raw material costs and also owing to strong demand trends in the semiconductor-related business.

Meanwhile, core operating income in this segment declined. Although progress was made in passing on cost to selling prices, amid impact from a rise in raw material costs, core operating income was hindered primarily by a rapid decline in demand for products used in displays and an increase in costs due to inflation.