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Message from President

President & Representative Director   Masato Izumihara

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.

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 "Vision UBE 2025 ~Prime Phase~" ,please click here (PDF:1.24MB).

Fiscal 2018 Earnings Results

Overview

During the current term, net sales of the Company Group increased, thanks to price normalization resulted from rises in raw material and fuel prices of the products represented by chemical products, as well as sales increases mainly in the Cement & Construction Materials Segment products and machines backed by the continued strong demand in the Japanese market. On the other hand, operating profit of the Company Group was affected by a price rise of coal, the periodic inspection of the ammonia product factory and a price decline in the synthetic rubber market.
Non-operating income increased, mainly because of business integration of equity-method affiliates.
The Company Group reports its consolidated results during the current term as follows:

(Billions of yen)
Item Net sales Operating profit Ordinary profit Profit attributable to
owners of parent
April 2018 – March 2019(1) 730,1 44.5 47.8 32.4
April 2017 – March 2018(2) 695.5 50.2 50.7 31.6
Difference(1)-(2) 34.5 -5.6 -2.8 0.8
Percentage change 5.0% -11.3% -5.7% 2.6%

Overview by Segment

Net sales

(Billions of yen)
Segment April 2018 –
March 2019(1)
April 2017 –
March 2018(2)
Difference(1)-(2) Percentage
change
Chemicals 314.9 305.4 9.5 3.1%
Pharmaceutical 10.1 10.2 -0.0 -0.8
Cement & Construction
Materials
250.2 238.8 11.3 4.8%
Machinery 97.2 90.1 7.1 7.9%
Energy & Environment 75.8 71.3 4.4 6.3%
Others 4.9 4.7 0.1 2.9%
Adjustment -23.2 -25.2 1.9 -
Total 730.1 695.5 34.5 5.0%

Operating profit

(Billions of yen)
Segment April 2018 –
March 2019(1)
April 2017 –
March 2018(2)
Difference(1)-(2) Percentage
change
Chemicals 23.7 28.9 -5.2 -18.0%
Pharmaceutical 0.8 2.1 -1.2 -59.4%
Cement & Construction
Materials
11.8 12.3 -0.4 -3.6%
Machinery 5.4 5.5 -0.1 -1.8%
Energy & Environment 2.5 2.3 0.2 9.1%
Others 0.8 0.8 -0.0 -7.8%
Adjustment -0.7 -1.9 1.1 -
Total 44.5 50.2 -5.6 -11.3%

Chemicals – Increases in net sales and decrease in operating profit

  • Nylon, Caprolactam and Industrial Chemicals Businesses
    The Caprolactam Business recorded a sales increase, thanks to price normalization of the products to offset the continued excessive supply capacity in the China market. The Nylon Business recorded a sales increase, thanks to a sales volume increase resulted from a rise in production capacity in Spain.
    The Industrial Chemicals Business recorded a sales decrease, due to decreases in production and shipment of the products as the result of the once-every-two-year inspection in the ammonia product factory and the subsequent production problems at the factory.
    Net sales increased, but operating profit decreased in the Nylon, Caprolactam and Industrial Chemicals Businesses as a whole, due to implementation of periodic inspection of the ammonia product factory.
  • The Synthetic Rubber Business recorded an increase in net sales and a decrease in operating profit, because sales volume of the products mainly used for tires increased while product prices fell despite rises of raw material prices in the first half of the fiscal year under review.
  • Battery Materials and Fine Chemicals Businesses
    In the Battery Materials Business, sales volume increased, because production capacity of separators increased, thanks to an increase in demand mainly for the products mounted on automobiles, but net sales as a whole declined mainly due to restructuring of the electrolyte business in China.
    The Fine Chemicals Business recorded a sales increase, thanks to rises in overall sales prices.
    The Battery Materials and Fine Chemicals Businesses was strong as a whole, but was affected by the organizational restructuring. As the result, net sales decreased and operating profit increased.
  • Polyimide and Functional Products Businesses
    The Polyimide Business recorded an increase in net sales, because increases in sales volume of the films mainly used on circuit boards remained stable and of varnish used for organic EL panels.
    The Polyimide and Functional Products Businesses continued to be strong as a whole and recorded increases both in net sales and operating profit.

Pharmaceutical – Decreases in both net sales and operating profit

  • The Pharmaceutical Business recorded an increase in net sales and a decrease in operating profit, because sales volume of the drugs manufactured under contract increased while the royalty revenues declined.

Cement & Construction Materials – Increases in net sales and decrease in operating profit

  • The Cement and Ready-Mixed Concrete Business recorded a net sales increase, because the sales volume remained strong. On the other hand, the business was affected by a price rise of coal.
  • The Calcia and Magnesia Business recorded an increase in net sales, thanks to sales volume increases and sales price rises of the products represented by the magnesia products.
  • Net sales increased, but operating profit decreased in the Cement & Construction Materials Segment as a whole, due to strong impact of a price rise of coal.

Machinery – Increases in net sales and decrease in operating profit

  • The Molding and Industrial Machines Business recorded an increase in net sales, because sales of the products remained strong.
  • The Steel Products Business recorded a sales increase, thanks to sales price normalization under the situation where prices of secondary materials and electricity remained high.
  • The Machinery Segment recorded an increase in net sales and a decrease in operating profit, because the Segment as a whole was significantly affected by raw material prices and construction expenses that remained at high levels.

Energy & Environment – Increases in both net sales and operating profit

  • The Coal Business recorded a net sales increase, thanks to rises of sales prices backed by favorable condition of coal market.
  • The Power Business recorded a sales increase, thanks to an increase in volume of selling electricity for the reason that the once-every-two-year inspection of the IPP power plant did not take place.
  • Both net sales and operating profit increased in the Energy & Environment Segment as a whole, mainly for the reason that the once-every-two-year inspection of the IPP power plant did not take place.

Others – Increases in net sales and decrease in operating profit