Major Japanese companies reported losses or huge falls in profits for the fi scal year ended March 31, 2009, caused mainly by a sharp fall in demand in the second half of the year. Quarterly earnings were not disclosed.
Mitsubishi Chemical reported a net loss of ¥67 billion ($705 million) for the year ended March 31, 2009, compared with a net profi t of ¥164 billion in the year ended March 31, 2008, on sales down 0.7%, to ¥ 2. 9 trillion. The results refl ect a sudden decline in demand in several businesses in the second half of the year, Mitsubishi says. The business environment in the company’s performance products and chemicals segments became very challenging due to the drop in demand and “confusion” caused by falling raw material and fuel prices in the second half of the fi scal year, Mitsubishi says.
Mitsubishi’s chemicals segment recorded an 8% fall in sales for the fi scal year, to ¥ 1.07 trillion, and an operating loss of ¥55.5 billion, compared with an operating profi t of ¥ 10. 8 billion in the previous fi scal year. Mitsubishi’s ethylene output for the fi scal year decreased by about 17%, to 1 million m.t.
Sumitomo Chemical recorded a net loss of ¥59 billion for the year ended March 31, compared with a net profi t of ¥63 billion in the previous fi scal year. Sales decreased
¥95 billion, compared with a net profi t of
¥ 25 billion in the previous fi scal year. Sales
decreased 17%, to ¥ 1.48 trillion. Revenues
at Mitsui’s basic chemicals segment fell
18%, to ¥913 billion, and the segment
6%, to about ¥ 1. 8 trillion. Sumitomo says recorded an operating loss of ¥ 32 billion,
it faced very challenging operating con- compared with an operating profi t of ¥33
ditions with feedstock prices surging billion in the previous fi scal year.
during the fi rst half of the fi scal year, and Shin-Etsu Chemical reported a 16% fall
the automotive and electronics industries in net profi ts, to ¥155 billion, on sales down
implementing massive productioncutbacks 13%, to ¥ 1. 2 trillion. The company’s poly-
in the second half. vinyl chloride (PVC) business in Japan was
Sumitomo’s petrochemicals and plas- impacted by sluggish demand, but the PVC
tics segment recorded
an 8% fall in sales, to FALLING PROFITS*
¥553 billion. The com-
(in billions of yen)
SALES CHANGE EARNINGS CHANGE
pany’s sales of styrene Mitsubishi Chemical ¥ 2,909 -0.7% -¥67 NM
and propylene oxide, Sumitomo Chemical 1,788 - 6 -59 NM
as well as synthetic Asahi Kasei 1,553 - 8. 5 4. 7 - 93%
resins fell in Japan and Mitsui Chemicals 1,487 - 17 -95 NM
overseas due to a fall Shin-Etsu Chemical 1,200 - 13 155 - 16
in demand from the Teijin 943 - 9 -43 NM
automotive and other *Sales and net earnings for selected Japanese companies for the scal year ended
March 31, 2009. NM=not meaningful. Source: Company reports.
related industries in
the second half. The petchem segment businessinEuropeandtheU.S.maintained
posted an operating loss of ¥ 30. 3 billion, strong sales and profi tability, it says.
compared with an operating profi t of ¥ 4. 5 Teijin reported a net loss of ¥43 billion,
billioninthe previousfi scalyear. compared with a net profi t of ¥ 12. 6 bi-l
Asahi Kasei recorded a 93% fall in net lion in the previous fi scal year, on sales
profi ts, to ¥ 4. 7 billion, on sales 8.5% lower, 9% lower, at ¥943 billion. Demand shrank
at ¥ 1.55 trillion. Asahi’s chemicals seg- rapidly starting October 2008 in the auto-
ment recorded a 16% fall in annual sales, motive and electronics markets, which are
to ¥741.5 billion, and an operating loss of crucial for Teijin, the company says.
¥419 million, compared with an operating DIC Corp. reported a 91.5% fall in net
profi t of ¥65 billion in the last fi scal year. profi ts, to ¥ 2. 6 billion on sales down 13.5%,
Mitsui Chemicals reported a net loss of to ¥932 billion. —DEEPTI RAMESH
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