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

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.

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