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| October 4, 2001 |
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| Notice of Revised Financial Information for
Mitsubishi Chemical |
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| Mitsubishi Chemical Corporation |
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(Tokyo)-Mitsubishi Chemical Corporation (Nikkei: 4010) today reported that it
has revised its consolidated and non-consolidated financial projections for the
first half of fiscal year 2001, a period ending on September 30, 2001. A previous
financial projection had been announced on May 16, 2001, at the time when FY2000
earnings were reported. Mitsubishi Chemical Corp. has also revised its projected
financials for FY2001, a period ending on March 31, 2002.
These revisions reflect the current economic environment and its effect on Mitsubishi
Chemical Corps business performance. As a result of the projected earnings revisions,
Mitsubishi Chemical Corp. is also announcing revisions to its expected dividend
per share.
1.Revision of projected consolidated business results for the first half of FY2002
(April 1,2001 - September 30, 2001)
| |
Unit |
Net sales |
Operating income |
Pre-tax earnings before extraordinary
items |
Net income (loss) |
| Expected results announced previously
(A) (announced on May 16, 2001) |
In 100 millions of yen |
8,620 |
310 |
160 |
0 |
| Revised expected results (B) |
In 100 millions of yen |
8,300 |
100 |
(50) |
(100) |
| Increase/(decrease) (B - A) |
In 100 millions of yen |
(320) |
(210) |
(210) |
(100) |
| Rate of increase/(decrease) |
% |
(3.7) |
(67.7) |
- |
- |
| Actual results in the same period
of previous year (ending in September 2000) |
In 100 millions of yen |
8,326 |
357 |
245 |
5 |
2.Revision of projected consolidated business results for fiscal year 2001 (April
1, 2001 - March 31, 2002)
| |
Unit |
Net sales |
Operating income |
Pre-tax earnings before extraordinary
items |
Net income (loss) |
| Expected results announced previously
(A) (announced on May 28, 2001) |
In 100 millions of yen |
18,900 |
910 |
640 |
180 |
| Revised expected results (B) |
In 100 millions of yen |
18,300 |
530 |
245 |
(90) |
| Increase/(decrease) (B - A) |
In 100 millions of yen |
(600) |
(380) |
(395) |
(270) |
| Rate of increase/(decrease) |
% |
(3.2) |
(41.8) |
(61.7) |
- |
| Actual results of previous fiscal
year (ending in March 2001) |
In 100 millions of yen |
17,472 |
664 |
423 |
32 |
3. Revision of projected non-consolidated business results for the first half
of fiscal year 2001 (April 1, 2001 - September 30, 2001)
| |
Unit |
Net sales |
Operating income |
Pre-tax earnings before extraordinary items |
Net income (loss) |
| Expected results announced previously (A) (announced
on May 16, 2001) |
In 100 millions of yen |
3,570 |
70 |
35 |
10 |
| Revised expected results (B) |
In 100 millions of yen |
3,390 |
(70) |
(90) |
(540) |
| Increase/(decrease) (B - A) |
In 100 millions of yen |
(180) |
(140) |
(125) |
(550) |
| Rate of increase/(decrease) |
% |
(5.0) |
- |
- |
- |
| Actual results in the same period of previous
year (ending in September 2000) |
In 100 millions of yen |
3,841 |
92 |
97 |
19 |
4.Revision of projected non-consolidated business results for fiscal year 2001
(April 1,2001 - March 31,2002)
| |
Unit |
Net sales |
Operating income |
Pre-tax earnings before extraordinary
items |
Net income (loss) |
| Expected results announced previously
(A)(announced on May 16, 2001) |
In 100 millions of yen |
7,400 |
240 |
160 |
80 |
| Revised expected results (B) |
In 100 millions of yen |
7,000 |
40 |
(20) |
(580) |
| Increase/(decrease) (B - A) |
In 100 millions of yen |
(400) |
(200) |
(180) |
(660) |
| Rate of increase/(decrease) |
% |
(5.4) |
(83.3) |
- |
- |
| Actual results of previous fiscal
year (ending in March 2001) |
In 100 millions of yen |
7,815 |
206 |
182 |
41 |
5.Reasons for Mitsubishi Chemical Corps revised earnings projections are explained
in the attached document.
6.Mitsubishi Chemical Corps revised dividend per share is a result of the anticipation
that non-consolidated business results will be substantially lower than previously
announced on May 16, 2001. This dividend revision is shown below.
Revision of expected dividend
| |
Mid-term |
End-term |
Per annum |
| Previously announced (on May 16,2001) |
- |
Yen 3 |
Yen 3 |
| Revised expected dividend |
- |
Yen 0 |
Yen 0 |
| Actual per share dividend for previous year
|
- |
Yen 2 |
Yen 2 |
| For further information, please contact |
| Public Relations Dept., |
| Mitsubishi Chemical Corporation |
| Tel: [+81] 3-3283-6254 |
<Reasons for Revised Financial Information>
Expected consolidated business results
An expected decrease in net sales will result from the decline in shipping in
almost all industry sectors that are dependent on petrochemicals. In addition,
price drops as a result of the U.S. economic slowdown and the Japanese economy'deflationary
spiral have also contributed to the expected decrease in net sales. Changes to
the anticipated operating income by industry segment are as follows:
Operating income by segment for the first half of FY2001 (in 100 millions of yen)
| |
Revised |
Previously announced |
Increase/(decrease) |
(September 2000) |
| Petrochemicals |
(45) |
90 |
(135) |
(102) |
| Carbon and Agrochemicals |
30 |
60 |
(30) |
(57) |
| Information and Electronics |
(15) |
10 |
(25) |
(-10) |
| Pharmaceuticals |
105 |
70 |
35 |
(65) |
| Specialty Chemicals |
25 |
50 |
(25) |
(34) |
| Functional Materials |
60 |
90 |
(30) |
(103) |
| Services |
30 |
50 |
(20) |
(61) |
| Corporate Costs |
(90) |
(110) |
20 |
(-55) |
| Total |
100 |
310 |
(210) |
(357) |
Operating income by segment for FY2001 (in 100 millions of yen)
| |
Revised |
Previously announced |
Increase/decrease |
(March 2001) |
| Petrochemicals |
45 |
300 |
(255) |
(204) |
| Carbon and Agrochemicals |
105 |
140 |
(35) |
(120) |
| Information and Electronics |
5 |
50 |
(45) |
(-33) |
| Pharmaceuticals |
285 |
220 |
65 |
(102) |
| Specialty Chemicals |
55 |
110 |
(55) |
(78) |
| Functional Materials |
135 |
200 |
(65) |
(199) |
| Services |
95 |
100 |
(5) |
(121) |
| Corporate Costs |
(195) |
(210) |
(15) |
(-127) |
| Total |
530 |
910 |
(380) |
(664) |
With regard to the Petrochemicals segment, it is anticipated that revenues from
Mitsubishi Chemical's styrene monomer and caprolactam businesses and its subsidiaries,
Japan Polychem Corp. and V-Tech Corp., will be substantially and negatively affected
by an increase in raw material prices and a decrease in international market demands.
The Information and Electronics Related Products sector is also anticipating a
decline in profits as a result of stagnant sales of compound semiconductors and
printing materials. Similarly, the Specialty Chemicals and Functional Materials
and Plastic-Based Products segments are both expecting a decline in profits due
to a substantial drop in IT ("Information Technology") related demand.
The Pharmaceuticals sector, on the other hand, is expected to show an increase
in profits as a result of favorable sales of Radicut, a neuroprotective drug which
was launched in the first half of FY2001.
Expected non-consolidated business results
Approximately 70 percent of the decline in net sales will be a result of reduced
revenues in the Petrochemicals sector. 60 percent of the decline in operating
income is expected to be the result of reduced profits in the Petrochemicals sector
and 20 percent in the Specialty Chemicals sector.
As for the extraordinary loss items, Mitsubishi Chemical Corp. expects appropriately
70 billion yen, an increase of 62 billion yen more than the previous forecast.
Of the total special loss, 53.7 billion yen is the impairment losses of the stocks
of subsidiaries and affiliated companies in line with the 50 percent decreasing
standard of the "financial instruments accounting", such as Mitsubishi
Chemical America, Inc. and Mitsubishi Chemical Media Co., Ltd. of the Information
and Electronics Related Products sector, Mitsubishi Polyester Film GmbH of the
Functional Materials and Plastic-Based Products segment, and V-Tech Corp. of the
Petrochemicals sector. Recognizing impairment losses in FY 2001 by conservatively
valuing the assets shall reduce an impairment anxiety of equity securities in
subsidiaries and affiliates from FY 2002 onward.
Since the consolidated business results have already included the losses, these
impairment losses do not affect the consolidated business results. Of the remaining
16.3 billion yen, 10 billion yen will be spent on structural reform, an expenditure
planned for the second half of FY2002. This structural reform will include restructuring
non- profitable business and reductions in administrative costs as well as reductions
in the workforces at each plant. |
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