Shares in major chemical company UBE are moving lower. Although the company raised its first-half and full-year earnings forecasts for the fiscal year ending March 2027 on 2 November, weak market sentiment has kept the shares on a declining trend.
UBE fell for a fourth straight session, dropping ¥55 from the previous day to ¥3,195 as of 11:30. Buying came in immediately after the open, but selling subsequently prevailed against a backdrop of deteriorating market sentiment.
First-half ordinary profit rose from the previous forecast of ¥14.0 billion to ¥20.5 billion, while full-year ordinary profit increased from ¥37.5 billion to ¥39.0 billion. The factors behind the upward revisions were thereby indicated.
In the first half, higher selling prices in the Resins and Chemicals segment, driven by surging raw material and fuel costs, are expected to contribute to sales exceeding the previous forecast. Adjustments and inventory valuation differences, along with solid sales in the Functional Products and Machinery segments, also boosted profit.
For the full year, the company continues to expect higher selling prices in the Resins and Chemicals segment. Although weak market sentiment may weigh on the share price, the segment's performance is expected to be key to earnings.