UBE CORPORATION Consolidated Financial Report for the First Three Quarters Ended December 31, 2021
February 2, 2022 | |
Company name: | Ube Industries, Ltd. |
Representative: | Masato Izumihara, |
President and Representative Director | |
Security code: | 4208 (shares listed on First Section of Tokyo |
Stock Exchange and Fukuoka Stock | |
Exchange) | |
URL: | http://www.ube.co.jp/ |
Contact: | Hirotaka Ishikawa, General Manager, |
Finance & Investor Relations Department | |
Tel: +81-3-5419-6116 | |
(Amounts rounded to the nearest million yen) |
1. Consolidated Financial Results for the First Three Quarters Ended December 31, 2021
(From April 1, 2021 to December 31, 2021)
(1) Consolidated Operating Results | (% indicates the rate of increase / decrease to the same period of previous year) | |||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | |||||||||
owners of parent | ||||||||||||
April - December 2021 | 476,623 | - | 32,842 | 137.5% | 30,604 | 189.6% | 18,099 | 101.7% | ||||
April - December 2020 | 438,952 | (11.8)% | 13,827 | (45.6)% | 10,569 | (57.6)% | 8,973 | (40.9)% | ||||
(Note) Comprehensive Income: | From April 1, 2021 to December 31, 2021: | 17,664 Million Yen | 34.0% | |||||||||
From April 1, 2020 to December 31, 2020: | 13,179 Million Yen | (22.0)% | ||||||||||
Net income | Diluted net income | |||||||||||
per share (Yen) | per share (Yen) | |||||||||||
April - December 2021 | 183.34 | 182.79 | ||||||||||
April - December 2020 | 88.73 | 88.47 |
(Note) The Corporate Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) and other standards since the beginning of the consolidated first quarter of the fiscal year ending March 31, 2022, and that the respective figures reported in the consolidated financial results for the first three quarters ended December 31, 2021, show the amounts after which the above mentioned accounting standard is applied. In addition, the rate of increase and decrease in net sales for the first three quarters ended December 31, 2021 compared with the same quarters of the previous fiscal year is not indicated.
(2) Consolidated Financial Position
Total assets | Net assets | Shareholders' | |||
equity ratio (%) | |||||
December 31, 2021 | 794,085 | 377,764 | 44.9 | ||
March 31, 2021 | 769,710 | 380,635 | 46.6 | ||
(Reference) Shareholders' equity: | As of December 31, 2021: | 356,629 Million Yen | |||
As of March 31, 2021: | 359,013 Million Yen |
[Shareholders' equity = Net assets - Share acquisition rights - Non-controlling interests]
(Note) The Corporate Group has adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) and other standards since the beginning of the consolidated first quarter of the fiscal year ending March 31, 2022, and that the respective figures reported in the consolidated financial results for the first three quarters ended December 31, 2021, show the amounts after which the above mentioned accounting standard is applied.
2. Cash Dividends
Cash dividends per share (Yen) | |||||||||
First | Second | Third | Year end | Annual | |||||
quarter | quarter | quarter | |||||||
April 2020 | - March 2021 | - | 45.00 | - | 45.00 | 90.00 | |||
April 2021 | - March 2022 | - | 45.00 | - | |||||
April 2021 | - March 2022 (Forecast) | 45.00 | 90.00 | ||||||
(Note) Revision of the latest forecast of cash dividends: No | |||||||||
－ 1 | － |
3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2022
(From April 1, 2021 to March 31, 2022)
(% indicates the rate of increase / decrease to the same period of previous year)
Net sales | Operating | Ordinary | Profit attributable to | Net income | |||
profit | profit | owners of parent | per share(Yen) | ||||
April 2021 - March 2022 | 635,000 | - | 39,000 | 50.6% | 33,500 43.8% | 19,500 (15.0)% | 197.66 |
(Note) Revision of the latest forecast of consolidated financial results: No
Please take note that the "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020) and other standards are applied from the first quarter of the fiscal year ending March 31, 2022, and that the above forecast of consolidated financial results shows the amounts after which the above mentioned accounting standard is applied. In addition, the rate of increase and decrease in net sales compared with the previous fiscal year is not indicated.
(Notes)
- Changes in significant subsidiaries during the first three quarters ended December 31, 2021: Yes
- UBE Elastomer Co. Ltd.
(Note) For more details, please refer to "5. Consolidated Financial Statements (4) Notes to Quarterly Consolidated Financial Statements (Changes in significant subsidiaries during the first three quarters ended December 31, 2021)".
(2) Adoption of special accounting methods for presenting quarterly consolidated financial statements: Yes
(Note) For more details, please refer to "5. Consolidated Financial Statements (4) Notes to Quarterly Consolidated Financial Statements (Application of the special accounting methods for preparing the quarterly consolidated financial statements)".
-
Changes in accounting policies applied, changes in accounting estimates and retrospective restatement Changes in accounting policies applied due to revisions of accounting standards: Yes
Changes in accounting policies other than the above: No
Changes in accounting estimates: No
Retrospective restatement: No
(Note) For more details, please refer to "5. Consolidated Financial Statements (4) Notes to Quarterly Consolidated Financial Statements (Changes in accounting policies)".
(4)Number of shares outstanding (common stock) | |||
December 31, 2021 | March 31, 2021 | ||
Numbers of shares outstanding at period end | 106,200,107 | 106,200,107 | |
Numbers of shares of treasury stock at period end | 9,426,942 | 5,056,029 | |
April - December 2021 | April - December 2020 | ||
Weighted-average number of shares outstanding during period | 98,716,496 | 101,132,713 |
(Information regarding quarterly review procedures)
The financial information contained in this report is not subject to quarterly review procedures by independent auditors.
(Cautionary statement on forward-looking statements)
The performance forecast and other forward-looking statements contained in this material have been prepared on the basis of information available at this point and certain assumptions which are judged to be rational. It may be substantially different from the actual performance because of various factors such as economic conditions in key markets, supply and demand of products, the prices of raw material and fuel, interest rates, and exchange rates.
－ 2 －
4. Qualitative Information on Operating Results
- Overview of Operating Results
During the current term, net sales of the Company Group increased despite negative impact resulted from adoption of the Accounting Standard for Revenue Recognition, because sales volume of the products used in the automobile industry such as nylon and synthetic rubber increased and sales pricing of the products such as nylon, caprolactam and synthetic rubber rose as well, as business performance started to recover from the demand slowdown due to the outbreak of COVID-19, particularly in the Chemicals Segment.
Operating profit and ordinary profit increased mainly due to the positive impact of increases in sales volume, particularly in the Chemicals Segment, as well as rising sales prices for nylon, caprolactam and synthetic rubber, despite the negative impact of rising coal prices in the Construction Materials Segment. Profit attributable to owners of parent increased mainly due to the positive impact of an increase in ordinary profit, despite exclusion of extraordinary income resulted from the split of Electrolyte Business that had occurred in the same period of previous year.
As a result, the Company Group reports its consolidated results during the current term as follows:
(Billions of yen) | ||||||||||
Item | Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||
owners of parent | ||||||||||
April - December 2021 ① | 476.6 | 32.8 | 30.6 | 18.0 | ||||||
538.6 | ||||||||||
April - December 2020 ② | 438.9 | 13.8 | 10.5 | 8.9 | ||||||
Difference ① - ② | 37.6 | 19.0 | 20.0 | 9.1 | ||||||
99.6 | ||||||||||
Percentage change | - | 137.5% | 189.6% | 101.7% | ||||||
22.7% | ||||||||||
(2) Overview by Segment | ||||||||||
Net sales | (Billions of yen) | |||||||||
Segment | April - December 2021 | April - December 2020 | Difference | Percentage | ||||||
① | ② | ① － ② | Change | |||||||
Chemicals | 247.6 | 179.7 | 67.9 | - | ||||||
254.8 | 75.1 | 41.8% | ||||||||
Construction Materials | 161.4 | 212.3 | (50.9) | - | ||||||
219.0 | 6.6 | 3.1% | ||||||||
Machinery | 70.7 | 54.5 | 16.2 | - | ||||||
67.9 | 13.4 | 24.7% | ||||||||
Others | 2.4 | 2.3 | 0.1 | - | ||||||
2.4 | 0.1 | 7.1% | ||||||||
Adjustment | (5.7) | (10.0) | 4.2 | - | ||||||
(5.7) | 4.2 | - | ||||||||
Total | 476.6 | 438.9 | 37.6 | - | ||||||
538.6 | 99.6 | 22.7% | ||||||||
Operating profit | (Billions of yen) | |||||||||
Segment | April - December 2021 | April - December 2020 | Difference | Percentage | ||||||
① | ② | ① － ② | Change | |||||||
Chemicals | 26.0 | 1.5 | 24.4 | - | ||||||
Construction Materials | 3.5 | 11.0 | (7.5) | (68.2)% | ||||||
Machinery | 3.2 | 1.0 | 2.1 | 200.8% | ||||||
Others | 0.3 | 0.3 | 0.0 | 19.4% | ||||||
Adjustment | (0.2) | (0.1) | (0.0) | - | ||||||
Total | 32.8 | 13.8 | 19.0 | 137.5% |
(Note) The figures shown at the bottom of each table are reference values for expected results if the Accounting Standard
for Revenue Recognition is not adopted.
Adjustment includes corporate expenses (general expenses that are not distributed to each reportable segment) and internal transactions between the segments.
－ 3 －
Chemicals - Increases in both net sales and operating profit
-
Engineering Plastics & Fine Chemicals
The Caprolactam Business recorded a net sales increase thanks to continued strong demand for products used in textiles, as well as sales prices increase related to rising market prices of raw materials such as benzene.
The Nylon Business recorded an increase in net sales, because of a sales volume increase supported mainly by a recovery in demand for products used in the automobile industry, as well as an increase in sales price thanks to market price rises of caprolactam.
The Industrial Chemicals Business recorded a net sales increase due to the lack of a biennial inspection for the ammonia product factory in this term contributing to increases in both production and shipment volume, as well as increases in sales prices.
The Fine Chemicals Business recorded an increase in net sales because sales volume of its products remained stable, particularly the products for automobiles.
Both net sales and operating profit increased in the Engineering Plastics & Fine Chemicals Businesses as a whole due to increasing sales volume supported by a recovery in demand and increasing sales price due to the rising market price of raw materials. In addition, there was no biennial inspection of the ammonia product factory. - The Synthetic Rubber Business recorded increases in both net sales and operating profit because shipment of the products mainly used for tires remained strong, as well as the rising product price due to the market price rises of butadiene.
-
Specialty Products
The Battery Materials Business recorded a sales decrease despite a sales increase of separators due to demand recovery for automotive mounting products. This was also because exclusion of the Electrolyte Business from net sales and operating profit starting from the second half of the previous fiscal year greatly affected the overall business performance.
The Polyimide Business recorded an increase in net sales, because sales volume of the COF films mainly used on displays increased and demand for varnish used for organic EL panels remained stable.
Both net sales and operating profit increased in the Specialty Products Business as a whole despite the exclusion of the Electrolyte Business from net sales and operating profit, as a result of the overall demand, such as Polyimide, Separation Membrane and Ceramics, remaining firm. - The Pharmaceutical Business recorded an increase in net sales and a decrease in operating profit. While royalty revenues remained stable, sales of the drugs developed by UBE was sluggish.
- Both net sales and operating profit increased in the Chemicals Segment as a whole due to both sales volume and product pricing increasing, due to the recovery from the impact of the COVID-19 pandemic. In addition, there was no biennial inspection of the ammonia product factory.
Construction Materials - Decreases in both net sales and operating profit
- The Cement and Ready-Mixed Concrete Business recorded a decrease in net sales mainly due to a decrease in shipment volume which resulted from the slowdown of construction projects for earthquake disaster reconstruction, reactionary falls that resulted from completion of construction works to extend the railways for bullet trains, negative impacts of weather conditions such as heavy rains, and the substantial negative impact that adoption of the Accounting Standard for Revenue Recognition had mainly on the Corporate Group's sales subsidiaries.
- The Calcia and Magnesia Business recorded an increase in net sales due to increases in sales volume of the quicklime used in the steel industry and the magnesia used in the steel and electric power industries, thanks to recovery of the demand.
- The Energy Business recorded a net sales increase despite a decrease in electric power sales due to the biennial inspection of the IPP power plant. This was the result of rising coal sales prices due to soaring valuations in the coal market.
- The Construction Materials Segment as a whole recorded decreases in both net sales and operating profit mainly due to adoption of the Accounting Standard for Revenue Recognition, the biennial inspection of the IPP power plant, and a cost increase which resulted from rising coal prices.
－ 4 －
Machinery - Increases in both net sales and operating profit
- The Molding Machine Business recorded an increase in net sales because sales of the products used in the automobile industry remained strong in the China and North America markets, although recovery status of demand for the products differs depending on the market.
- The Industrial Machines Business recorded an increase in net sales thanks to the strong sales of products such as conveyors used in the electric power industry.
- The Steel Products Business recorded an increase in net sales due to product pricing rises alongside raw material price increases, as well as continued strong sales volume.
- The Machinery Segment as a whole recorded increases in both net sales and operating profit because strong sales of molding machines and industrial machines, and rising steel product pricing greatly affected the overall business.
Others - Increases in both net sales and operating profit
－ 5 －
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Ube Industries Ltd. published this content on 02 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 February 2022 06:18:26 UTC.
