On November 10, 2021 Kureha Corporation reported that (Press release, Kureha Corporation, NOV 10, 2021, View Source [SID1234595215])
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1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to September 30, 2021)
(1) Consolidated Operating Results
(2) Consolidated Financial Position
2. Dividends
2. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2022 (From April 1, 2021 to March 31, 2022)
1. Advanced Materials In the advanced plastics category, revenue and operating profit rose on higher sales of polyvinylidene fluoride (PVDF) used as a binder material for lithium-ion secondary batteries, polyglycolic acid (PGA) products used in the process of shale oil and gas fracking, polyphenylene sulfide (PPS), and other processed plastics products. In the carbon products category, revenue rose on higher sales of carbon fiber used in heat insulating material for high-temperature furnaces and sliding material for automotive parts, but operating profit was flat year on year. As a result, revenue in Advanced Materials was 28,794 million yen (up 54.9% year on year), and operating profit was 2,600 million yen (versus operating loss of 760 million yen in the six months ended September 30, 2020).
2. Specialty Chemicals Revenue increased in the agrochemicals and pharmaceuticals category owing to higher sales of Kremezin (therapeutic agent for chronic renal failure) as well as agricultural and horticultural fungicides. However, operating profit was flat year on year. In the industrial chemicals category, revenue rose due to higher sales of organic chemicals, and earnings recovered to an operating profit from an operating loss recorded in the same period the previous year. Consequently, revenue in Specialty Chemicals was 12,804 million yen (up 15.7% year on year), resulting in an operating profit of 1,168 million yen (up 32.3% year on year).
3. Specialty Plastics Both revenue and operating profit increased in the consumer goods category as sales of New Krewrap plastic wrap for household use and Seaguar fluorocarbon fishing lines increased. In the packaging materials category, revenue and operating profit also increased due to higher sales of polyvinylidene chloride (PVDC) film and heat-shrink multilayer film. As a result, revenue in Specialty Plastics was 22,942 million yen (up 8.8% year on year), and operating profit was 5,140 million yen (up 38.1% year on year).
4. Construction In Construction, private-sector construction projects were on par with the previous year, but delays of public-sector construction starts caused both revenue and operating profit to decline year on year. Consequently, revenue in Construction was 5,524 million yen (down 5.2% year on year), and operating profit was 414 million yen (down 10.5% year on year).
5. Other Operations In the environmental engineering category, despite higher volumes of industrial waste treatment and processing including low-concentration PCB waste, revenue and operating profit declined on the completion of the natural disaster-related waste treatment and processing conducted during the same period the previous year. In the logistics category, both revenue and operating profit remained flat year on year. In the hospital operations category, both revenue and operating loss remained flat year on year. As a result, revenue in Other Operations was 9,003 million yen (down 4.9% year on year), and operating profit was 1,799 million yen (down 10.2% year on year).
(2) Overview of Financial Position for the Period under Review Total assets as of September 30, 2021 were 264,557 million yen, up 7,634 million yen compared to March 31, 2021. Current assets totaled 91,804 million yen, up 5,567 million yen from March 31, 2021, due to increases in cash and cash equivalents and trade receivables. Non-current assets stood at 172,752 million yen, up 2,066 million yen from March 31, 2021. Contributing factors to the rise in non-current assets were increases in the valuation of investment securities, intangible assets, assets related to equity method investments, and retirement benefit asset, which offset the 2,280 million yen decline in property, plant and equipment to 117,891 million yen from the reduction entry accompanying receipt of government subsidy. Total liabilities were 70,859 million yen, down 542 million yen compared to March 31, 2021. This primarily reflects the repayment of loans payable, which minimized the interest-bearing debt by 2,042 million yen to 27,464 million yen, more than absorbing the increase in trade payables. Total equity was 193,698 million yen, up 8,176 million yen compared to March 31, 2021. This was mainly due to the recording of 8,328 million yen in profit attributable to owners of the Company and an increase in other components of equity, which offset the dividend payments of 1,659 million yen from retained earnings. As of September 30, 2021, the COVID-19 pandemic has had no impact on the Group’s capacity to secure liquidity or collect accounts receivable.
(3) Outlook for the Fiscal Year Ending March 2022 and beyond In light of recent performance trends, the Company has revised its consolidated earnings forecast for the fiscal year ending March 31, 2022 from the figures announced on May 12, 2021. For details, please refer to the "Notice of Revised Financial Forecast and Revised Dividend Forecast" released today (November 9, 2021)