Mitsui Chemicals' profits surge in fiscal 2020

According to the news of the ICIS website on May 13th, as the profitability of the basic materials business has benefited from the improvement in overseas markets, despite the decline in sales, as of March 2021, Japan’s Mitsui Chemicals’ net Profits increased by 70.

The company said on Thursday that the decline in group sales was due to falling product prices, dragged down by the falling prices of naphtha and other raw materials and fuels during the coronavirus epidemic.

Sales of its basic materials segment fell 12.

Mitsui Chemicals said that due to the impact of the coronavirus, the demand for downstream products has decreased, and the operating rate of its naphtha cracking unit has been lower than the previous fiscal year.

Polypropylene has been affected by the slowdown in demand for automotive products.

In the current fiscal year ending March 2022, Mitsui Chemicals expects that as the global economy recovers from the recession triggered by the 2020 epidemic, the company's earnings will increase.

According to the company’s forecast, basic materials should generate 635 billion yen in sales and 36 billion yen in operating profit before special projects.

The report said: "In the chemical industry, although demand is expected to expand due to signs of economic recovery, chemical companies should remain vigilant and pay attention to market fluctuations in raw materials and other chemical products.

(1 U.

Wang Lei is an excerpt from ICIS

The original text is as follows:

Japan's Mitsui Chemicals FY2020 profit surges on better overseas markets

Mitsui Chemicals' net profit for the fiscal year ending March 2021 posted 70.

Lower group sales were attributed to declines in product prices, dragged down by falls in values ​​of naphtha and other raw materials and fuel amid the coronavirus pandemic, the company said on Thursday.

Its basic materials segment reported a 12.

Mitsui Chemicals said that operating rates at its naphtha crackers were lower than the previous fiscal year due to decreased demand for downstream products, caused by the impact of the coronavirus.

"Performance of polypropylene was affected by slowing demand for automotive products.

For the current fiscal year ending March 2022, Mitsui Chemicals is projecting higher earnings, in line with the global economic recovery from a pandemic-induced slump in 2020.

　　Basic materials should be able to generate sales of Y635bn and yield an operating profit before special items of Y36bn, based on the company's forecasts.

　　"In the chemical industry, although demand is expected to expand due to signs of economic recovery, chemical companies should remain vigilant regarding fluctuations of raw materials and other chemical product markets," it said.

　　($1 = Y109.
7)