Mitsubishi Chemical Corporation Half-Year Report 2024

Performance Overview

In the business environment of the consolidated first half (April 1, 2023 – September 30, 2023; same hereafter) of the Mitsubishi Chemical Group (the MCG Group), while a moderate recovery trend continued as a result of the normalization of economic activities, outlook remained uncertain due to the effects of monetary tightening, especially in Europe and the United States, and the slowdown in the Chinese economy, on top of the impact of price hikes.

Against this backdrop, sales revenue in the consolidated quarter under review (April 1, 2023 – September 30, 2023; same hereafter) decreased ¥119.9 billion, or 5.3%, to ¥2,149.9 billion. In the profit front, core operating income fell ¥3.0 billion, or 2.5%, to ¥119.6 billion. Operating income was up ¥20.2 billion, or 17.1%, to ¥138.6 billion. Income before taxes increased ¥8.2 billion, or 6.7%, to ¥130.2 billion. And net income attributable to owners of the parent dropped ¥6.7 billion, or 9.1% to ¥67.2 billion.

Specialty Materials Segment, Performance Products Domain

In comparison with the same quarter in the previous consolidated fiscal year, sales revenue decreased ¥44.4 billion, to ¥582.7 billion and core operating income declined ¥26.5 billion, to ¥17.1 billion.

In polymers and compounds, sales revenue decreased due to a decline in demand for paints, inks, adhesives and barrier packages, among 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 sales volume reflecting slowdown in demand on the whole, including that related to high-performance engineering plastics, carbon fiber, and polyester films, 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 mainly to a decline in sales reflecting sluggish overall demand, despite an improvement in the balance between cost and selling prices as a result of an effort to maintain and increase selling prices.