Sanyo Chemical Industries <4471> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 on the 12th. Revenue decreased by 2.8% year-on-year to 77.03 billion yen, operating profit increased by 120.5% to 4.453 billion yen, ordinary profit increased by 0.9% to 4.991 billion yen, and net income attributable to parent company shareholders fell by 78.6% to 0.94 billion yen.

Revenue in the lifestyle and healthcare industry related sectors decreased by 12.5% year-on-year to 20.729 billion yen, with operating profit at 0.252 billion yen (compared to a loss of 0.973 billion yen in the same period last year). In the lifestyle-related sector, revenue increased due to the recovery of the polyethylene glycol market. In the healthcare-related sector, revenue significantly decreased due to withdrawal from the superabsorbent resin business.

Revenue in the petroleum and trucking machinery related sectors increased by 1.2% year-on-year to 25.112 billion yen, with operating profit increasing by 96.6% to 2.113 billion yen. Although the demand for lubricant additives increased due to recovery, the raw materials for polyurethane foam used in automobile seats remained stagnant due to the inflow of low-cost products from overseas, and the overseas demand for urethane beads for automobile interior materials was sluggish, leading to flat revenue.

Revenue in the plastics and fiber industry related sectors increased by 9.5% year-on-year to 13.384 billion yen, with operating profit increasing by 25.1% to 1.426 billion yen. The plastics industry related sector saw a rise in sales due to the increasing demand for permanent antistatic agents from semiconductors and electronic components, and the sales of paint coating agents and additives were also strong, resulting in increased revenue. The fiber industry related sector saw a significant increase in the oils used during the manufacturing of tire cord threads, accompanied by the recovery in automobile production, while the demand for carbon fiber agents for wind power turbines is also on a recovering trend; however, synthetic leather remained sluggish, resulting in flat revenue.

Revenue in the information and electrical electronics industry related sectors decreased by 7.5% year-on-year to 10.484 billion yen, and operating profit increased by 9.6% to 1.206 billion yen. In the information industry related sector, while the demand for toner binders is on the rise, the materials for polymerization toners saw a significant drop in revenue due to the withdrawal from production operations in china, leading to a large decrease in revenue. In the electrical electronics industry related sector, although the electrolyte for aluminum electrolytic capacitors remained flat, related materials saw an increase in sales due to the recovery in the semiconductor market, leading to increased revenue.

In the environment and housing equipment industry related sectors, revenue increased by 1.5% year-on-year to 7.318 billion yen, with an operating loss of 0.002 billion yen (compared to a profit of 0.338 billion yen in the same period last year). The environment industry related sector faced sluggish demand for cation monomers for high polymer coagulants due to market decline. The housing equipment industry related sector experienced low demand for cement additives, although sales of raw materials for building sealants were strong, resulting in steady performance.

For the consolidated financial forecast for the fiscal year ending March 2025, revenue is anticipated to decrease by 9.1% from the previous year to 145 billion yen, operating profit is predicted to increase by 84.2% to 9 billion yen, ordinary profit is expected to rise by 22.1% to 10 billion yen, and net income attributable to parent company shareholders is projected at 4 billion yen, maintaining the upward revised forecast announced on September 27.