-Japanese producer Asahi Kasei said it expects to recover from the full-year net loss it registered for the year ending 31 March, with petrochemical demand and prices expected to pick up in the latter half of the fiscal year, said the company.
The company swung to a net loss of Yen (Y) 91.3bn in the year ending 31 March 2023 from a gain of Y161.9bn in the previous year, weighed down by an impairment loss of Y185bn related to its Polypore lithium-ion membrane battery separators business.
Asahi Kasei's operating income fell by 36.7% year on year to Y128.4bn in the year to 31 March, weighed down by lingering semiconductor shortages and lockdowns in China, which resulted in sluggish demand and higher feedstock prices.
However, overall sales rose by 10.8% year on year to a record Y2.73trillion for the year ending 31 March. This was supported by a weaker yen and increased petrochemical prices.
For the first half of its fiscal year ending 30 September, the company expects to generate a net income of Y28bn, with further improvement at Y72bn for the six-month period ending 31 March 2024.
The company said that while high energy costs persist, certain feedstock prices are trending downward at its main material business unit. Asahi Kasei also sees gradual demand improvement for its automotive-related products after it was impacted by the global semiconductor shortage last year.
We remind, Asahi Kasei and Microwave Chemical launched a joint demonstration project in April 2023 with the objective of commercializing a chemical recycling process for polyamide 66 using microwave technology.
mrchub.com