DIC CORPORATION 4631.T : Tokyo Stock Exchange
DIC Corporation
Consolidated Financial Results FY2023: Six Months Ended June 30
August 2023
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. | 1 |
Highlights
FY2023 six months results
Net sales
¥515.3 billion
YoY -1.2％
Operating income
¥10.0 billion
YoY -58.4％
FY2023 forecasts
- Forecasts for net sales and operating income have been revised down.
- Forecast for annual dividends
per share has been revised to ¥80.00.
- In the Color & Display segment, pigments were affected by slowing economic growth in Europe, a leading market for these products, as a result of which shipments declined.
- Sluggish demand and inventory adjustments were seen in multiple industries, pushing down shipments. In the Functional Products segment, in particular, sales volume for digital materials, used primarily in electrical and electronics equipment and in displays, was down, while shipments of industrial materials,* used primarily in mobility solutions, languished as the resolution of inventory adjustments across the supply chain was delayed.
- DIC uses the term "industrial materials" to describe products for use in mobility solutions, namely, automobiles, railroads and shipping, and for general industrial applications such as construction equipment and industrial machinery.
- Operating income fell. This was due largely to sinking shipments of pigments for coatings and for plastics, as well as high-value-added products, notably digital materials and materials used in mobility solutions.
- With a recovery in demand now expected to take longer than initially anticipated, forecasts for full-term consolidated net sales and operating income have been revised downward, to ¥1,060.0 billion and ¥25.0 billion, respectively.
- The forecast for annual cash dividends per share has been revised to ¥80.00, consisting of an interim dividend of ¥50.00 and a year-end dividend of ¥30.00.
The fiscal year of all overseas and domestic companies in the DIC Group ends on December 31. This document presents consolidated results for the first six months of fiscal year 2023, ended June 30, 2023.
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. | 2 |
Year-on-year changes in quarterly shipments of principal products by segment
Packaging & Graphic（Packaging inks, Publication inks*）
2022 | 2023 | ||||||
Jan-MarApr-Jun | Jul-Sep | Oct-Dec | Jan-MarApr-Jun | ||||
+0％ | -0％ | -4％ | -9％ | -8％ | -10% | ||
• | Shipments stagnated, as rising prices led to sluggish demand for consumer |
goods. | |
• | The People's Republic of China (PRC) saw a gradual recovery in sales volume, |
but demand in the Americas and Europe remained weak. | |
* Includes news inks |
Color & Display（Pigments*）
2022
Jan-MarApr-JunJul-SepOct-Dec
-5％ -11％ -19％ -28％
2023
Jan-MarApr-Jun
-18％ -17%
• | Shipments shrank overall, owing to a decrease in demand resulting from slowing |
economic growth in Europe, a primary market, and moves by customers to | |
curtail inventories. | |
• | Shipments of pigments for displays recovered to a normal level, as display |
manufacturers completed inventory adjustments. | |
* The results of the C&E pigments business are excluded from year-on-year calculations for fiscal year 2022 | |
but included in those for fiscal year 2023. |
Functional Products（Performance Materials products*）
2022 | 2023 | ||||||
Jan-Mar | Apr-Jun | Jul-Sep | Oct-Dec | Jan-MarApr-Jun | |||
-6％ | -6％ | -5％ | -10％ | -15％ | -10% | ||
• | Shipments of epoxy resins and other digital materials declined, as conditions in |
the semiconductor market deteriorated sharply. | |
• | In the area of industrial materials, used primarily in mobility solutions, shipments |
languished, despite signs of a recovery in automobile production, as the | |
resolution of inventories across the supply chain was delayed. | |
* The results of listed subsidiaries, Guangdong TOD, acquired in July 2022, and PCAS Canada, | |
acquired in June 2023, are excluded. |
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. | 3 |
Consolidated statement of income
(Billion yen) | 2022 | 2023 | Change | % Change | |
6 Months | 6 Months | ||||
Net sales | 521.4 | 515.3 | -6.1 | -1.2% | |
Cost of sales | (415.4) | (420.6) | -5.2 | ||
Selling, general and administrative expenses | (82.0) | (84.7) | -2.7 | ||
Operating income | 24.0 | 10.0 | -14.0 | -58.4% | |
Operating margin | 4.6% | 1.9% | - | ||
Interest expenses | (0.9) | (2.4) | -1.6 | ||
Equity in earnings (losses) of affiliates | 1.0 | 0.9 | -0.1 | ||
Foreign exchange gains (losses) | 2.1 | (1.0) | -3.1 | ||
Other, net | 0.0 | (0.3) | -0.3 | ||
Ordinary income | 26.2 | 7.1 | -19.0 | -72.7% | |
Extraordinary income | 1.3 | 0.5 | -0.8 | ||
Extraordinary losses | (3.5) | (2.3) | 1.1 | ||
Income before income taxes | 24.0 | 5.3 | -18.7 | ||
Income taxes | (8.8) | (4.0) | 4.8 | ||
Net income | 15.1 | 1.3 | -13.8 | ||
Net income attributable to non-controlling interests | (0.7) | (0.3) | 0.4 | ||
Net income attributable to owners of the parent | 14.4 | 1.0 | -13.4 | -93.1% | |
EBITDA* | 47.4 | 32.8 | -14.6 | -30.8% | |
- Change on a local currency baisis
-5.5%
-58.3%
ー
ー
ー
Extraordinary income and losses | 2022 | 2023 |
6 Months | 6 Months | |
Extraordinary income | ||
Gain on sales of non-current assets | 0.9 | 0.5 |
Gain on sales of investment securities | 0.4 | - |
Extraordinary losses | ||
Impairment losses | (1.0) | (0.9) |
Severance costs | (0.9) | (0.8) |
Loss on disposal of non-current assets | (1.0) | (0.6) |
Loss on withdrawal from business | (0.5) | - |
■ Average rate
2022 | 2023 | |||
6 Months | 6 Months | |||
Yen/US$ | 123.25 | 135.88 | ||
Yen/EUR | 134.89 | 146.91 | ||
* EBITDA: Net income attributable to owners of the parent + Total income taxes + (Interest expenses - Interest income) + Depreciation and amortization + Amortization of goodwill
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. | 4 |
Operating income variance
- Shipments of pigments fell sharply, owing to slowing economic growth in Europe, a principal market for these products. Additionally, the product mix deteriorated as a result of a decline in shipments of high-value-added products used in electrical and electronics equipment and in mobility solutions.
24.0
（Billion yen）
+29.3 +0.3
10.0
-23.6
-17.0 | -3.0 | |||||
2022 | Sales | Raw | Costs | Sales | Forex | 2023 |
2Q | volume & | materials | prices | & others | 2Q | |
product mix | prices |
COPYRIGHT © DIC CORPORATION ALL RIGHTS RESERVED. | 5 |
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Disclaimer
DIC Corporation published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 03:08:42 UTC.
