Japan's MGC nine-month op income up 13.4%

04 February 2008 10:12  [Source: ICIS news]

TOKYO (ICIS news)--Mitsubishi Gas Chemical (MGC) posted a 13.4% year-on-year increase in its nine-month operating income partly because profit from the aromatics segment spiked 83% on robust sales of purified isophthalic acid (PIA), it said on Monday.

Consolidated operating income in the nine months ended 31 December was yen (Y) 37.6bn ($352m), up from Y33.2bn the previous year, the Japanese chemicals producer said in a statement.

Net sales during the same period rose 7.1% to Y383.3bn from Y357.7bn the year earlier, while net income was down 0.7% to Y32.5bn from Y32.8bn, it added.

In the aromatic chemicals segment, nine-month operating income jumped 83% to Y10.6bn from Y5.8bn the previous year, while net sales were up 7.5% to Y108.8bn from Y101.2bn.

This was because specialty aromatic chemical products saw substantial increases in revenue and earnings due to strong sales of such products as meta-xylenediamine (MXDA) and MX nylon, as well as robust PIA sales on the back of tight supply and demand worldwide, the company said.

However, the nine-month operating income in the natural gas chemicals segment declined 7.2% to Y2.5bn from Y2.7bn in the year-ago period, while net sales were up 4.2% to Y101.8bn from Y97.6bn, MGC said.

In the segment, methanol revenues increased due to a renewed surge in the market at the start of the third quarter, which was prompted by a decrease in operations at the overseas manufacturing plants of other companies, according to MGC.

Performance of enzymes and coenzymes decreased substantially, however, due to a slowdown in the market, mainly in exports, despite increased sales volumes of coenzyme Q10, the company said.

($1 = Y107)

By: Tomomi Yokomura
+65 6780 4359

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