Source disclosure: February 05, 2026
Mitsui Chemicals,Inc. [4183.T]
TOKYO, Feb 5 (Pulse News Wire) -- Mitsui Chemicals, Inc. (4183.T), one of Japan's leading chemical manufacturers, has released its third quarter earnings report for the fiscal year ending March 2025 and provided an overview of its performance expectations for the same period. The company noted that these forecasts are based on currently available information but may be subject to various risks and uncertainties, which could lead to significant deviations from actual results.
For the third quarter ended December 2024, Mitsui Chemicals reported a core operating income of ¥680 billion, marking a decrease of ¥78 billion compared to the previous year, representing a decline of approximately 10%. This downturn was primarily attributed to reduced profitability within the Basic & Green Materials segment due to lower naphtha prices, large-scale regular maintenance at the Chiba plant, and low operational rates at cracker facilities. Despite this, the company maintained a robust performance in growth areas such as Information Communication Technology (ICT), where sales remained strong despite challenges including delayed pesticide sales periods, U.S. tariff policies affecting mobility solutions, semiconductor supply shortages, and currency exchange losses caused by the appreciation of the yen.
The company revised its full-year forecast for core operating income to ¥1,030 billion, down from the previously estimated ¥1,090 billion. This downward adjustment is mainly due to anticipated losses in the Basic & Green Materials segment, projected to amount to ¥150 billion, reflecting continued low operational rates and adverse market conditions. In contrast, the growth area is expected to see a core operating income of ¥1,240 billion, up from ¥1,159 billion last year, driven by increased demand in advanced fields and recovery in the semiconductor market.
Regarding shareholder returns, Mitsui Chemicals plans to repurchase shares worth ¥300 billion, aiming to reduce the outstanding share count to around 5% of the total number of shares issued upon completion of the buyback. Additionally, the company announced an interim dividend increase of ¥5 per share to ¥37.5, bringing the annual dividend payout to ¥75 per share after accounting for the stock split implemented on January 1, 2026. The firm also intends to enhance its return on equity (ROE) and overall enterprise value through these measures, aligning with its strategy to improve capital efficiency and ensure stable, ongoing dividends.
Mitsui Chemicals emphasized its commitment to maintaining a sustainable dividend policy while pursuing strategic investments and optimizing its capital structure. The company’s efforts include a focus on structural improvements and addressing operational issues, such as resolving problems at ethylene plants, which have contributed to past losses. These initiatives underscore Mitsui Chemicals' dedication to balancing short-term financial health with long-term strategic goals aimed at enhancing shareholder value.