On November 9, 2021 Kureha Corporation reported (Press release, Kureha Corporation, NOV 9, 2021, View Source [SID1234595210])
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FY2021 half-year operating profit at ¥11.4bn (up 84% YOY, up 52% from initial forecast); Full-year forecast revised upward to ¥19.5bn (up 13% YOY, up 30% from initial forecast)
◼ FY2021 year-end dividend forecast raised to ¥100 per share, up from ¥85 in prior year
◼ FY2021 business conditions characterized by:-Pandemic-impacted consumer behaviors (under stay-home restrictions) and robust outdoor leisure demand persisting during 1H, which is likely to diminish in 2H-Continued strong demand for automotive lithium-ion batteries as EV production and sales expand across the globe, driven by nations’ environment and economic initiatives-Surging fuel and raw materials prices due to tight oil supply, natural resources deficit and logistics/supply chain disruptions in post-pandemic recovery-Impact of reduced car production on Kureha Group businesses is limited and minimal
◼ Kureha Group has implemented strategic measures to:-Increase sales volumes of high-margin grades and items in PVDF, PPS, ‘NEW Krewrap’ and other product lines, while reducing cost via improved efficiency and expanded production output-Adjust sales prices to align with rising fuel and raw material costs Further risks:-Restriction of energy use in China may affect local manufacturing operations (Changshu PVDF facilities) and procurement of raw materials for PVDF manufacturing in Japan (Iwaki Factory)- Delays in reflecting a further and rapid rise in fuel/raw material prices
Factors attributing to changes in operating profit
AM: Increased sales volumes of PVDF, PPS and other advanced materials
SC: Industrial chemicals returned to generating profit
SP: Higher home products and packaging film volumes
CO: Profit maintained despite delays in civil engineering projects
OO: Absence of prior year’s post-typhoon waste treatment projects
Factors attributing to changes in operating profit
AM: Better-than-expected volume growth for PVDF and carbon products, an increase in equity in PPSrelated affiliate’s earnings
SC: Front-loaded deliveries of agrochemicals (2H→1H) SP: Continued pandemic-impacted demand for home products, fewer expenses
CO: Improved sales cost due to mix changes and cost reduction
OO: Higher sales volumes in the low-PCB waste treatment business