Kurabo Industries – Although the third quarter was greatly affected by the new coronavirus epidemic, the profit of the chemical product business achieved double-digit growth | Reuters

*11:02 JST KURABO—The third quarter of the chemical products business was greatly affected by the new coronavirus epidemic, and the profit still achieved double-digit growth
warehouse3106Announced on the 5th the consolidated financial results for the third quarter of the fiscal year ending March 2021 (April 2020-December 2020). Sales fell 17.2% year-on-year to 87.523 billion yen, operating income fell 41.5% year-on-year to 1.731 billion yen, ordinary income fell 33.9% year-on-year to 2.714 billion yen, and the profit attributable to owners of the parent company decreased by 52.4% year-on-year. to 1.632 billion yen.

Textile business sales fell 20.1% year-on-year to 30.410 billion yen, with an operating loss of 1.639 billion yen (loss of 1.414 billion yen in the same period last year). In the yarn segment and casual apparel segment, sales fell due to business partners closing stores due to the state of emergency declared in April and lower orders due to slump in consumer spending. In the uniform segment, sales declined due to sluggish sales of uniforms in the construction and manufacturing sectors and lower orders due to the spread of COVID-19. Sales of antibacterial and antiviral functional materials were booming. Affected by the spread of COVID-19, sales at overseas subsidiaries declined due to reduced orders from Brazil and Thailand.

Sales of chemical products fell 16.5% year-on-year to 35.018 billion yen, but due to cost reductions, operating income increased 28.1% year-on-year to 802 million yen. In the automotive sector, sales fell as automakers suspended operations due to the spread of the novel coronavirus, leading to a drop in domestic and overseas orders. Orders from Chinese subsidiaries are recovering. In the field of functional resins, resin processed products used in semiconductor manufacturing equipment are showing a recovery trend. In response to the spread of the new coronavirus infection, orders for newly developed medical clothing have increased, but sales have been boosted due to the voluntary cancellation of various orders. Sales were down due to weaker sales of transparent archival films. In the housing construction materials segment, sales declined due to a decline in new housing starts due to the consumption tax hike in October 2019 and the spread of the novel coronavirus infection.

Environmental electromechanical business sales fell 18.5% year-on-year to 12.548 billion yen, and operating income fell 44.0% year-on-year to 975 million yen. In the electronics field, sales of film thickness gauges and liquid component concentration meters were stable, but overall sales activity in Japan and overseas was affected by the decrease in large-scale projects for semiconductor cleaning-related equipment at subsidiaries and the spread of the new crown epidemic. 19. Sales are down due to stagnant sales. In the field of engineering, biomass-related facilities performed well, but there were fewer plant-related construction projects, resulting in a decline in sales. In the field of biomedicine, the new coronavirus antibody detection kit launched in March 2020 performed well, and the contract genetic analysis service also performed well, resulting in an increase in sales. In the field of machine tools, both in Japan and overseas, due to the spread of the new coronavirus infection, capital investment has been sluggish, and sales have decreased, resulting in a decrease in sales.

Food and service business sales fell 9.5% year-on-year to 6.452 billion yen, and operating income fell 60.2% year-on-year to 219 million yen. In the food sector, increased sales of freeze-dried fruits such as molded soup and oatmeal resulted from increased demand for meals at home due to continued telecommuting and reduced outings due to the spread of the novel coronavirus. In terms of hotel business, due to the spread of the novel coronavirus infection, banquets and accommodations have been canceled one after another. All hotels were temporarily closed in May 2020, and sales declined due to limited sales.

In terms of real estate business, due to the expiration of some rental property contracts, sales decreased by 3.9% year-on-year to 3.093 billion yen, with sales of 2.144 billion yen.

For the full year ending March 2021, net sales are expected to decrease by 10.4% year-on-year to 128.000 billion yen, operating income will decrease by 33.9% year-on-year to 3.000 billion yen, and ordinary income will decrease by 34.4% year-on-year to 3.600 billion yen. The consolidated profit forecast announced on August 7, 2020 remains unchanged, and the net profit for the year ended March 31, 2020 decreased by 46.4% year-on-year to 2 billion yen.

“British Stone”