Major Japanese Chemical Makers Project Higher Profits for FY 2026

Tokyo, May 14 (Jiji Press)–Four major Japanese chemical makers have projected profit increases for fiscal 2026, thanks to structural reforms for petrochemical operations and revenue diversification into semiconductor materials. However, two of the four companies did not consider the current turmoil in the Middle East when making their projections. Crude oil supply disruptions and price spikes may impact their earnings. One of the two companies is Mitsubishi Chemical Group Corp., which is still bracing for the Middle East situation to reduce its profits by 18 billion yen if the current situation persists. Mitsubishi Chemical expects its consolidated net profit to grow over 10 times to 127 billion yen from 11.8 billion yen in fiscal 2025, when the company incurred over 190 billion yen in losses due to impairment linked to the delayed construction of a food packaging plant in Britain, as well as restructuring costs, including an early retirement program. The other is Asahi Kasei Corp., which foresees a potential 10-billion-yen blow from the Middle East turmoil. Asahi Kasei forecasts that its annual net profit will increase 0.8 pct to 160 billion yen, led by electronic materials for advanced semiconductors used for artificial intelligence. The company is working to pass on higher costs for oil-linked materials such as naphtha to customers, but its president, Koshiro Kudo, said, “Consumption may weaken if we cannot gain customers’ understanding.” Sumitomo Chemical Co. forecasts a net profit of 70 billion yen, up 14.9 pct, in anticipation of increased demand for agricultural chemicals. Mitsui Chemicals Inc. forecast a net profit of 45 billion yen, up 30.9 pct, on the back of higher demand for high-performance materials used in eyeglass lenses. Sumitomo Chemical and Mitsui Chemicals predict that the Middle East crisis will lower their earnings by 10 billion yen and 15 billion yen, respectively. For fiscal 2025, which ended this March, three of the four companies, excluding Mitsubishi Chemical, secured net profit increases. END [Copyright The Jiji Press, Ltd.]