Japan's Mitsui Chemicals April-Sept net income falls amid lower output

Author: Nurluqman Suratman

2020/11/11

SINGAPORE (ICIS)--Mitsui Chemicals' net income in the April to September period 2020 fell on the back of lower production amid poorer demand caused by the coronavirus pandemic, the Japanese producer said on Wednesday.

Yen (Y) billion Q3 2020 Q3 2019 % change 
Sales 537.0 678.7 -20.9
Operating income 17.9 36.9 -51.5
Net income 9.6 20.4 -52.9

- All business segments saw lower sales during the period as compared to the previous year, weighed by lower sales prices due to the fall in naphtha and other raw materials and fuel prices.
- Naphtha cracker operating rates were lower than the same period of the previous fiscal year due to decreased demand of downstream products, which was impacted by coronavirus.
- The company's polypropylene (PP) was affected by slowing demand for automotive products.

OUTLOOK

Yen (Y) billion April 2020-March 2021 April 2019-March 2020 % change 
Sales 1,175.0 1,349.5 -12.9
Operating income 52.0 64.6 -19.5
Net income 33.0 34.0 -2.9

"It is still unclear as to when the pandemic will be contained, and the impact on the group’s performance is difficult to fully predict," the company said in a statement.

"Depending on how the pandemic progresses, the group may possibly incur further losses from the third quarter onward," it added.

Visit the ICIS Coronavirus topic page for analysis of the impact on chemical markets and links to latest news.