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Message from President

President & Representative Director   Yuzuru Yamamoto

President & Representative Director

Thank you for visiting the website of Ube Industries, Ltd.

The origins of the Ube Industries Group began more than a century ago in 1897, with the founding of the Okinoyama Coal Mine in Ube City, Yamaguchi Prefecture under the leadership of our founding president, Sukesaku Watanabe.

Since then, UBE has continued to expand into diverse areas of business including machinery, cement, chemicals, and the energy and environment sector while emphasizing business synergy and securing regional development. We continue to keep a diverse business portfolio, yet the nature of our business and our regional business development is changing significantly with the times.

Under our medium-term management plan, Change & Challenge 2018, UBE has set the following two basic policy, "Strengthen the Business Foundation to Enable Sustainable Growth" and "Address and be Part of the Solution for Resource, Energy, and Global Environmental Issues", and is implementing diverse strategies.

Lately, UBE's non-chemicals businesses have generated strong results while the chemicals segment has struggled. The latter has been due to deflationary pressure brought on by shifting market conditions including increased competition from emerging countries, and from other factors such as shorter life cycles for chemical products. As we outlined in our medium-term management plan, UBE will put every effort into further strengthening the revenue base from non-chemicals businesses and work to quickly revive the chemicals segment, as business conditions rapidly change. Our strength is technology and engineering, which we will leverage to enhance our competitiveness while we develop our business globally and move faster as a company.

UBE is committed to securing continued growth for all stakeholders including shareholders, and for the sake of future generations. Thank you for your continued support.

For more details of the new medium-term management plan called "Change & Challenge" ,please click here (PDF:1.45MB).

Fiscal 2016 Earnings Results

In the fiscal year ended March 31, 2017, the U.S. economy sustained recovery and the European economy was also on a track of modest recovery, but the slowing of the Chinese economy became more apparent in Asia; as a whole, the world economy continued modest recovery, while lacking a strength. Although improvement was delayed in some sectors, the overall Japanese economy continued to be on a track of modest recovery.
Under such circumstances, the Company Group has announced "Change & Challenge 2018," the three-year midterm plan for the next three years starting from this fiscal year. Based on the basic policies of the new midterm plan, such as "Strengthen the Business Foundation to Enable Sustainable Growth" and "Address and be Part of the Solution for Resource, Energy, and Global Environmental Issue," we will make full efforts to enhance profitability of each business segment and to overcome business challenges one by one. During the current term, consolidate operating income of the Company Group decreased due to impact of the appreciation of yen that had on overall business. In addition, the business of the Chemicals Segment was adversely affected by price rises of raw materials for some products and a cost increase resulted from periodic inspection of the domestic ammonia product factory. The Cement & Construction Materials Segment suffered from weak demand and worsened export environment in the Japanese cement market. On the other hand, current net income attributable to shareholders of the parent company increased, because large extraordinary losses were not recorded during the current term.

Billions of Yen
  Fiscal year ended
Mar. 31, 2016
Fiscal year ended
Mar. 31, 2017
Change
Net Sales 641.7 616.5 -25.1
Operating Income 41.4 34.9 -6.4
Ordinary Income 39.6 33.3 -6.2
Net Income 19.1 24.1 +5.0

The overall conditions of the Group by segment are as follows.

  1. Chemicals Segment
    Shipment of polyamide resins was steady because of a steady increase in sales of the products used for food wrap films, but was affected by price rises of raw materials. Although state of supply excess continued in the China market, some signs of recovery were seen in the business of caprolactam, which is a material used for polyamide. In the overseas markets, price falls of auxiliary materials such as ammonia also contributed to the business of the products. Shipment of ammonia products was weak, due to periodic inspection of the factory. Shipment of polybutadiene rubber (synthetic rubber) was steady as a whole, including the products used for eco tires, but was affected by price rises of raw materials.
    Shipment of both separators and electrolyte for lithium-ion batteries increased, thanks to application on vehicles such as eco-cars. Shipment of polyimide films and fine chemicals was steady as a whole.
  2. Pharmaceutical Segment
    Shipment of active ingredients respectively for hypotensive agent, antiallergic drugs and antiplatelet agent developed by UBE increased. Shipment of active ingredients and intermediates for drugs manufactured under contract was steady as a whole.
  3. Cement & Construction Materials Segment
    Domestic shipment of cement and ready-mixed concrete was affected by sluggish demand.
    Shipment of exported cement continued to be strong, but the market prices stayed relatively low. In this third quarter, price rises of coal also affected the business. Shipment of calcia and magnesia products was steady as a whole.
  4. Machinery Segment
    Shipment of industrial machines such as vertical mills and conveyers was weak in both domestic and overseas markets. Shipment of molding machines mainly supplied to the automobile industries was steady in the domestic market, but export of them was weak due to an adverse effect of foreign exchange rates. Business performance of machinery services of those products and shipment of steel products remained at a steady level.
  5. Energy & Environment Segment
    In the coal business, sales volumes of salable coal and volume of coal dealing at UBE's Coal Center (a coal storage facility) respectively decreased in comparison with the same period in the previous year. The power producer business was affected by periodic inspection of UBE's in-house power plant.