Risk of declining domestic and overseas demand, falling product market prices and intensifying competition

「有機EL関連材料・回路材料が中国でのパネル需要低迷及び競争激化の影響を受けたが、パワーインダクタ用途の販売が伸長した。」

「The Resins and Chemicals segment was affected by sluggish market conditions for automotive applications, which caused the Resins business to stagnate, while the Chemicals business was also affected by deteriorating market conditions.」

「The Electronic Materials segment was affected by sluggish panel demand and intensifying competition in China for OLED-related and circuit materials.」

「Although apparel applications continued to be affected by sluggish European market conditions and intensifying competition from overseas products, they remained generally firm. Industrial applications did not fully recover, as automotive applications were affected by a misconduct issue at a domestic automaker and sluggish market conditions in Europe, and also by intensifying competition in China’s EV market.」

「Apparel applications remained sluggish due to deteriorating market conditions in Europe and the United States, while hygiene-material applications were affected by worsening supply and demand conditions. Industrial applications continued to recover, driven by recovery in automotive demand and expansion in EV applications.」

「During the cumulative third-quarter period, the global economy lacked momentum in its recovery, as the United States remained firm while Europe stagnated and China slowed. In Japan, normalization from the COVID-19 pandemic continued, but uncertainty over the outlook for the global economy and prolonged adjustment in the semiconductor market exerted downward pressure.」

「The Resins and Chemicals businesses were sluggish, with the Resins business affected by declining demand in the Chinese market and other factors. In the Films business, demand related to electronic components declined due to supply-chain inventory adjustments.」

「Demand declined in optical applications and electronic components related to the Films business and in circuit materials in the Electronic Information Materials business due to supply-chain inventory adjustments.」

「“Volume variance” was a total negative factor of ¥27.3 billion for business profit, primarily due to lower sales and production volumes accompanying the slowdown in global economic growth.」

「The Resins business was sluggish due to delayed recovery in domestic automotive applications and declining demand in the Chinese market. The Films business was affected by slowing demand in optical applications and electronic components related to polyester film. The Electronic Information Materials business experienced declining demand for organic EL-related materials and circuit materials.」

「The Resins business was sluggish due to delayed recovery in domestic automotive production and declining demand in the Chinese market. The Films business was affected by inventory adjustments in optical applications and electronic components related to polyester film. The Electronic Information Materials business experienced declining demand for organic EL-related materials and circuit materials.」

「During the cumulative first-quarter period, the global economy contracted due to factors including persistently high resource prices associated with the situation in Ukraine, lockdowns under China’s zero-COVID policy, and the impact of accelerating inflation, particularly in Europe and the United States, on personal consumption.」

「Demand recovered both domestically and overseas. In apparel applications, some uses continued to be affected by the novel coronavirus, but sports and outdoor applications remained strong. In industrial applications, some uses recovered, but automotive applications were affected by reduced automotive production.」

「During the cumulative third-quarter period, the global economy recovered significantly, supported by the continued recovery of the Chinese economy, a rebound from the downturn caused by the novel coronavirus, the easing of restrictions on activities as vaccinations progressed, and large-scale economic measures in the United States. Meanwhile, differences emerged among countries in the containment of the novel coronavirus and economic recovery depending on the effectiveness of infection-control and economic measures. Supply constraints also became apparent, including tight supply and demand for components, particularly semiconductors, and labor shortages, leading to reduced automotive production.」

「Demand recovered both domestically and overseas. In apparel applications, some uses continued to be affected by the novel coronavirus, but sports and outdoor applications remained strong. In industrial applications, automotive-related applications recovered and volumes increased.」

「Demand recovered both domestically and overseas. In apparel applications, some uses continued to be affected by the novel coronavirus, but sports and outdoor applications remained strong. In industrial applications, automotive-related applications recovered and volumes increased.」

「① In the Textile business, supply chains and production sites may undergo global changes due to the development of e-commerce (Electronic Commerce) in final consumption, changes in retail formats, and shifts in preferences resulting from the expansion of telework. ② In the Functional Chemicals business, currently supplied materials may change significantly as vehicles shift from reciprocating engines to xEVs and as the 5G market and digital revolution advance.」

「Demand for apparel applications remained weak due to lockdowns in various countries and excess distribution inventories, while general materials applications in industrial uses remained sluggish and sales volumes declined. In addition to increased demand for nonwoven fabrics used in medical garment fabrics and masks, signs of recovery emerged in automotive-related applications in the third quarter, but this was insufficient to offset the overall decline.」

「Both domestic and overseas operations were affected by stagnating production activities and consumer behavior caused by the novel coronavirus. Demand for apparel applications declined due to lockdowns and the closure of retail stores in various countries. In industrial applications, sales volumes for the core automotive-related applications declined due to automakers suspending operations and reducing production. Demand for nonwoven fabrics used in medical garment fabrics and masks increased, but this was insufficient to offset the overall decline. As a result, for the Textile business as a whole, revenue declined 21.8% year on year to ¥330.2 billion, and business profit declined 50.0% to ¥15.8 billion.」

「Demand for apparel applications declined due to lockdowns and the closure of retail stores in various countries. In industrial applications, sales volumes for the core automotive-related applications declined due to automakers suspending operations and reducing production. As a result, for the Textile business as a whole, revenue declined 25.9% year on year to ¥145.0 billion, and business profit declined 50.3% to ¥7.2 billion.」

「Meanwhile, production and sales volumes were significantly affected by the downturn in the Chinese economy caused by the U.S.-China trade tensions and slowing demand for automotive- and smartphone-related products. In the fourth quarter, the spread of the novel coronavirus caused production activities and consumer behavior to stagnate, resulting in a sharp slowdown in the global economy.」

「Overseas, market conditions in various applications were affected by the prolonged U.S.-China trade tensions and the slowdown in the Chinese economy. Demand remained sluggish for apparel applications, including sewn products and textiles, as well as automotive-related applications in Europe and China and hygiene-material applications in China.」

「Overseas, market conditions in various applications were affected by the prolonged U.S.-China trade tensions and the slowdown in the Chinese economy. Demand remained sluggish for apparel applications, including sewn products and textiles, as well as automotive-related applications in Europe and China and hygiene-material applications in China.」

「Overseas, market conditions in various applications were affected by the prolonged U.S.-China trade tensions and the slowdown in the Chinese economy. Demand remained sluggish for apparel applications, including sewn products and textiles, as well as automotive-related applications in Europe and China and hygiene-material applications in China.」

「Overseas, the performance of some subsidiaries, including those in Southeast Asia, was sluggish, and from the second half of the fiscal year the business was affected by slowing demand for automotive-related applications and other uses due to the slowdown in the Chinese economy.」

「Overseas, the performance of some subsidiaries, including those in Southeast Asia, was sluggish, and signs of declining demand for automotive-related applications emerged in China and elsewhere. In apparel applications, however, we continued to expand our integrated business.」

「The Electronic Information Materials business was affected by slowing demand for organic EL-related materials, although circuit materials produced by the Korean subsidiary remained firm.」

「The Resins business expanded sales of ABS and PPS resins and promoted the pass-through of higher raw material costs into prices. The Films business remained firm, with shipments of battery separator film for lithium-ion secondary batteries increasing against the backdrop of growing demand. The Electronic Information Materials business was affected by slowing demand for organic EL-related materials.」

「For the carbon fiber composite materials business as a whole, revenue increased 10.1% year on year to ¥177.9 billion, while operating income declined 13.3% to ¥20.8 billion.」

「In aerospace applications, inventory adjustments in the aircraft supply chain were completed, and shipments began to recover while end demand for aircraft remained solid. In general industrial applications, demand overall showed signs of recovery, particularly for environment- and energy-related applications such as compressed natural gas tanks and wind turbine blades. The business was also affected by higher raw material prices and intensifying competition. As a result, total revenue for the carbon fiber composite materials business increased 8.3% year on year to ¥128.2 billion, while operating income decreased 26.9% to ¥15.1 billion.」

「In aerospace applications, while end demand for aircraft remained solid and inventory adjustments in the supply chain were progressing, shipments had yet to recover fully. In general industrial applications, demand overall showed signs of recovery, particularly for environment- and energy-related applications such as compressed natural gas tanks and wind turbine blades. The business was also affected by higher raw material prices and intensifying competition.」

「Overseas, the performance of some subsidiaries, including those in Southeast Asia, was affected by sluggish exports to the Middle East and other factors, although automotive-related and hygiene-material applications generally remained firm. In the pharmaceutical business, shipments of Remitch®*, an oral antipruritic agent, increased partly because sales of the orally disintegrating tablet version began in June. Meanwhile, shipments of Feron®, a natural interferon beta product, and Dolner®, an oral prostacyclin derivative product, were sluggish due to the impact of alternative treatments and generic drugs.」

「Overseas, the performance of some subsidiaries, including those in Southeast Asia, was affected by sluggish end demand in Europe, China and elsewhere, particularly for apparel applications.」

「In the pharmaceutical business, sales volumes of Remitch®*, an oral antipruritic agent, increased against the backdrop of the additional indication approval obtained in 2015, but were affected by the April 2016 revision to official drug prices. Shipments of Feron®, a natural interferon beta product, and Dolner®, an oral prostacyclin derivative product, remained sluggish due to the impact of alternative treatments and generic drugs.」

「Sales prices for some chemical products declined due to the stronger yen and deteriorating market conditions. In the pharmaceutical business, sales volumes of Remitch®*, an oral antipruritic agent, increased against the backdrop of the additional indication approval obtained in 2015, but were affected by the April 2016 revision to official drug prices. Shipments of Feron®, a natural interferon beta product, and Dolner®, an oral prostacyclin derivative product, remained sluggish due to the impact of alternative treatments and generic drugs.」

「Sales prices for some chemical products declined due to the stronger yen and deteriorating market conditions. In the pharmaceutical business, sales volumes of Remitch®*, an oral antipruritic agent, increased against the backdrop of the additional indication approval obtained in Japan in 2015 for chronic liver disease. Meanwhile, shipments of Feron®, a natural interferon beta product, and Dolner®, an oral prostacyclin derivative product, remained sluggish due in part to the impact of alternative treatments and generic drugs.」

「The Group supplies basic materials to a broad range of industries, and demand for the Group’s products could decline rapidly due to changes in global or regional supply and demand, the increasing substitution of materials, changes in customers’ purchasing policies and other factors. In addition, various Group businesses face intense competition from other companies, and some are exposed to the threat of new entrants. The pharmaceutical and medical businesses are also subject to price fluctuations arising from revisions to official drug prices and reimbursement prices.」