Mitsubishi : Subsidiary Chuo Kagaku Co., Ltd. Notices Regarding Q2 Earnings Forecasts and Results, and Revision of full-year Earnings ForecastsTSE
November 10, 2020 at 06:19 am EST
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November 10, 2020
(Translation of report filed with the Tokyo Stock Exchange by Chuo Kagaku Co., Ltd on November 10, 2020)
Notice Regarding Q2 Earnings Forecasts and Results, and Revision of full-year Earnings
Forecasts of Chuo Kagaku Co., Ltd.
Chuo Kagaku Co., Ltd, (Chuo) has announced that its actual second-quarter (Q2) earnings for the fiscal year ending March 2021 (FY2020) differed from its forecast of August 12, 2020. The company has also revised its FY2020 full-year consolidated and non-consolidated earnings forecasts.
1. Forecasts
Difference Between Consolidated FY2020 Q2 Earnings Forecast and Results (April 1, 2020 to September 30, 2020)
Net Sales
Operating
Ordinary
Net Income
Net Income
(million
Income
Income
(million yen)
Per Share
yen)
(million yen)
(million yen)
(yen)
Previous
24,600
600
400
300
14.89
Forecast (A)
Result (B)
23,853
1,158
1,105
964
47.87
Difference
- 746
558
705
664
-
(B-A)
Difference
- 3.0%
93.2%
176.5%
221.5%
-
(%)
Previous
24,743
607
309
241
11.98
Year*
* April 1, 2019 to September 30, 2019
Revised Full-year Consolidated Earnings Forecast for FY2020 (April 1, 2020 to March 31, 2021)
Net Sales
Operating
Ordinary
Net Income
Net Income
(million
Income
Income
(million yen)
Per Share
yen)
(million yen)
(million yen)
(yen)
Previous
48,400
1,300
1,000
800
39.70
Forecast (A)
Revised
47,600
1,800
1,700
1,400
69.48
Forecast (B)
Difference
- 800
500
700
600
-
(B-A)
Difference
- 1.7%
38.5%
70.0%
75.0%
-
(%)
Previous
48,034
1,107
751
479
23.78
Year*
* April 1, 2019 to March 31, 2020
Difference Between Non-Consolidated FY2020 Q2 Earnings Forecast and Results (April 1, 2020 to September 30, 2020)
Net Sales
Ordinary Income
Net Income
Net Income
(million yen)
(million yen)
(million yen)
Per Share (yen)
Previous
21,000
200
100
4.96
Forecast (A)
Result (B)
20,658
603
538
26.75
Difference (B-
- 341
403
438
-
A)
Difference (%)
- 1.6%
201.9%
439.0%
-
Previous
21,842
257
196
9.74
Year*
* April 1, 2019 to September 30, 2019
Revised Full-YearNon-Consolidated Earnings Forecast for FY2020 (April 1, 2020 to March 31, 2021)
Net Sales
Ordinary Income
Net Income
Net Income
(million yen)
(million yen)
(million yen)
Per Share (yen)
Previous
41,700
700
500
24.82
Forecast (A)
Revised
41,400
1,100
900
44.67
Forecast (B)
Difference (B-
- 300
400
400
-
A)
Difference (%)
- 0.7%
57.1%
80.0%
-
Previous
42,203
354
95
4.76
Year*
*April 1, 2019 to March 31, 2020
2. Details
(1) Difference Between Half-Year Earnings Results and Forecasts
Lifestyle changes in Japan necessitated by the COVID-19 led to more people working away from their offices, studying online rather than in classrooms, and otherwise remaining at home. Despite those changes resulting in a surge in demand for takeout, delivery and other products and services catering to in-home eating, there was a significant drop in demand for those catering to events, outside dining, tourism and inbound. As a result, Chuo's second-quarter net sales fell short of its forecast. Conversely, falling raw-materials prices, efforts to increase operational efficiency, and other factors resulted in Chuo outperforming its forecasts for both ordinary and net income.
Despite general business restrictions in China, Chuo was able to maintain stability in its Chinese operations. As in Japan, growing demand for products and services catering to the COVID-19- driven, stay-at-home lifestyle changes, coupled with falling raw-materials prices and other positive forces helped to strengthen Chuo's performance. Although sales were below the company's forecast for China, all income categories exceeded it.
(2) Full-year Earnings Forecasts
Although Chuo anticipates continued uncertainty in its operating environment due to the COVID- 19 and outlooks for both the Japanese and world economies, it expects its second-half performance to remain in line with its recently announced figures and has revised its earnings forecasts accordingly.
Remarks
The above forecasts were prepared based on information available at the time of this announcement. Actual results may differ from the forecasts due to a variety of factors.
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Mitsubishi Corporation published this content on 10 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2020 11:18:01 UTC
Mitsubishi Corporation is a diversified group organized around 10 sectors of activity:
- manufacturing of food and consumer products (29.9% of net sales);
- production of chemicals and petroleum products (19.9%): crude oil, refined products, natural gas, synthetic fiber materials, petrochemicals, fertilizers and specialty chemicals ;
- production and processing of metals (12.6%): iron, steel products and non-ferrous metals;
- mineral resources exploitation (16.5%);
- exploration and production of natural gas (6.7%);
- car manufacturing (5.3%);
- production, transmission and distribution of electricity (5.3%);
- construction of energy infrastructure and industrial facilities (3.3%). The group also sells construction machinery, machine tools, agricultural machinery, elevators, escalators, facility management, ships and aviation equipment;
- development of real estate assets (0.4%);
- other (0.1%).
Net sales break down geographically as follows: Japan (51.8%), the United States (15.5%), Singapore (7%), Australia (6.2%) and other (19.5%).