Mitsubishi Chemical Group Corporation (MTLHY) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

I'm Minoru Keda, the CFO. Thank you very much for joining us in this hot weather. First, I'd like to explain the financial results summary for the first quarter fiscal year March 2027. During the first quarter for FY March 2027, I'd like to give you the summary. During the first quarter, specialty materials continue to perform steadily. amid unstable situations in the Middle East, the business environment remained challenging, with NAFTA price soaring and risk of raw materials procurement rising. However, we're seeing inventory valuations gain and a temporary increase in demand. The co-operating income for the chemicals business increased year-on-year by 48.4 billion to 60 billion yen. Contributing factors to corporate income were the effects of sustained pricing strategies and strong performance of semiconductor-related products and specialty materials, and improved conditions in the MMA market. In basic chemicals, inventory valuation gains resulting from rising raw material prices contribute to higher profits, Despite the expanded scale of scheduled maintenance where we had scheduled maintenance in Ibaraki, this year, a production slowdown to prioritize continued operation of cracker plants in response to the situation in the Middle East and a decrease in sales volume caused by an influx of lower prices of overseas products. Partly due to the solid performance of industrial gases, the overall cooperating income for the group increased year-on-year by 57.5 billion yen to 114.1 billion yen. Net income attributable to owners of the parents increased year-on-year by 38.1 billion yen to 57.7 billion yen. Next, I'd like to discuss our earnings forecast. In light of the first quarter results and current business environment, we have revised upwards Our first half forecast...