DIC Corporation Q3 Report 2023

Net sales ¥781.6 billion YoY -1.7％

• In the Color & Display segment, pigments were affected by prolonged economic stagnation in Europe, a leading market for these products, and rising prices in the United States, which depressed demand for consumer goods. As a result, pigments for coatings and for plastics continued to decline.
• In the Functional Products segment, signs of improvement were seen in shipments of digital materials, used principally in electrical and electronics equipment and in displays, and of industrial materials,* used primarily in mobility solutions, owing to progress in resolving surplus inventories across the supply chain. Nonetheless, sales remained lackluster overall, as demand remained in recovery mode.

Operating income ¥13.2 billion YoY -59.9％

• Operating income fell sharply. This was due largely to sinking shipments of pigments, mainly those for coatings and for plastics, and of high-value-added digital materials and materials used in mobility solutions, as well as to the temporary suspension of operations at certain production sites in the United States and Europe, a move aimed at paring inventories of pigments.
• With a full recovery in demand likely to take some time, the forecast for full-term consolidated net sales was revised downward, to ¥1,050.0 billion.
• Demand for pigments remains stubbornly sluggish, a consequence of prolonged economic stagnation in Europe and rising prices in the United States. Owing to the extension of operational adjustments at certain pigment production sites, the forecast for full-term consolidated operating income was revised downward, to ¥15.0 billion.