President & Representative Director
Thank you for visiting the website of UBE Corporation
Since our company was founded as “Anonymous Union Okinoyama Coal Mine Association” in 1897, we have expanded our business into machinery, cement and chemicals, and in 1942, each operating company merged and became “Ube Industries, Ltd.” Now 80 years of history stands behind this name.
However, due to the accelerating pace of change in the business environment, sustainable growth will be difficult unless each business autonomously and flexibly improves its corporate value according to its characteristics. Under these circumstances, the machinery business and the cement business were spun off, and from April 2022, the chemicals business is the core business of our company. To further promote globalization and shift from an energy-consumption heavy business structure to a specialty business that contributes to solving global environmental issues, the company name was changed to “UBE Corporation” (with each letter pronounced: U-B-E).
Under the banner of the new company name, the UBE Group will constantly take on the challenge of change, provide solutions to various social issues through manufacturing, and contribute to the formation of a sustainable society.
We look forward to your continued support in the future.
For more details of the new medium-term management plan called "UBE Vision 2030 Transformation — 1st Stage" ,please click here (PDF:3.45MB).
Fiscal 2023 Earnings Results
Overview
During the consolidated fiscal year under review, net sales decreased due to the significant impact of the sluggish sales of nylon polymers and caprolactam in the Polymers & Chemicals segment, affected partly by the slowdown of the Chinese economy, despite the effect of the acquisition of a contract drug development and manufacturing organization (API Corporation) in December 2022.
Operating profit increased despite sluggish sales of fine chemicals and industrial chemicals in the Polymers & Chemicals segment, mainly due to stable sales of separation membranes in the Specialty Products segment and after-sales services in the Machinery segment, as well as an increase in royalty revenues in the Pharmaceutical Business.
Ordinary profit and profit attributable to owners of parent both increased due to the increase in operating profit, as well as the improvement in share of profit of entities accounted for using the equity method as a result of efforts to raise selling prices in the cement-related business (Mitsubishi UBE Cement Corporation, an equity-method affiliate) to reflect soaring coal and other energy prices.
As a result, the Company Group reports its consolidated results during the current term as follows:
| Item | Net sales | Operating profit | Ordinary profit | Profit attributable to owners of parent |
|---|---|---|---|---|
| April 2023 – March 2024(1) | 468.2 | 22.5 | 36.3 | 29.0 |
| April 2022 – March 2023(2) | 494.7 | 16.2 | (8.7) | (7.0) |
| Difference(1)-(2) | (26.5) | 6.2 | 45.1 | 36.0 |
| Percentage change | (5.4)% | 38.5% | - | - |
Overview by Segment
Net sales
| Segment | April 2023 – March 2024(1) |
April 2022 – March 2023(2) |
Difference(1)-(2) | Percentage change |
|---|---|---|---|---|
| Specialty Products | 63.8 | 62.2 | 1.6 | 2.6% |
| Polymers & Chemicals | 257.2 | 293.4 | (36.2) | (12.3)% |
| Machinery | 96.9 | 96.9 | (0.0) | (0.0)% |
| Others | 80.5 | 73.1 | 7.4 | 10.1% |
| Adjustment | (30.1) | (30.8) | 0.8 | - |
| Total | 468.2 | 494.7 | (26.5) | (5.4)% |
Operating profit
| Segment | April 2023 – March 2024(1) |
April 2022 – March 2023(2) |
Difference(1)-(2) | Percentage change |
|---|---|---|---|---|
| Specialty Products | 12.1 | 10.2 | 1.9 | 18.2% |
| Polymers & Chemicals | 2.4 | 2.6 | (0.2) | (6.4)% |
| Machinery | 7.2 | 5.2 | 1.9 | 36.9% |
| Others | 4.5 | 2.6 | 2.0 | 75.2% |
| Adjustment | (3.8) | (4.5) | 0.7 | - |
| Total | 22.5 | 16.2 | 6.2 | 38.5% |
* Adjustment for operating profit includes corporate expenses (general expenses that are not distributed to each reportable segment) and internal transactions between the segments.
Specialty Products – Increases in both net sales and operating profit
The Polyimide Business recorded a decrease in net sales due to sluggish demand for large displays and smartphones. The Separation Membrane Business recorded an increase in net sales thanks to the continued stable demand for CO2 separation membranes for biomethane production.
The Ceramics Business recorded an increase in net sales thanks to strong demand for bearings and substrates for electric vehicles.
The Separators Business recorded a decrease in net sales due mainly to the impact of weak demand in the first half, although sales were strong in the second half in line with the recovery of automobile production.
The Specialty Products segment as a whole recorded increases in both net sales and operating profit thanks to strong performance in the Separation Membrane Business and the Ceramics Business.
Polymers & Chemicals – Decreases in both net sales and operating profit
- Performance Polymers & Chemicals Business
The Composite Business recorded an increase in net sales due to the recovery trend in automobile production.
The Nylon Polymer Business recorded a decrease in net sales despite stable demand in some overseas regions because demand for nylon film for food packaging was generally weak.
The Caprolactam & Ammonium Sulfate Business recorded a decrease in net sales because sales volume declined due to a drop in demand and selling prices also fell due to a decline in market prices of raw materials such as benzene and ammonium.
The Industrial Chemicals Business recorded a decrease in net sales due to weak shipments resulting from sluggish demand for ammonia in Japan and lower selling prices in line with declining international market prices.
The Fine Chemicals Business recorded a decrease in net sales due to intensifying competition associated with a decline in product market prices and sales volume. - Net sales of the Elastomer Business were at the same level as the previous fiscal year, despite weak domestic demand for automotive tires and other uses, because overseas shipments remained steady.
- The Polymers & Chemicals segment as a whole recorded decreases in both net sales and operating profit due to the significant impact of sluggish sales of the Fine Chemicals Business and the Industrial Chemicals Business, although there was no biennial inspection of the ammonia product factory.
Machinery – Decrease in net sales and increase in operating profit
The Molding Machine Business recorded an increase in net sales, despite the impact of sluggish capital investment in the automobile industry in the first half, due to recovery in the second half and stable performance of after-sales services. The Industrial Machines Business recorded an increase in net sales due to an increase in sales of products and stable performance of after-sales services.
The Steel Products Business recorded a decrease in net sales due to a decrease in sales volume caused by declining demand both in Japan and overseas.
As for the Machinery segment as a whole, net sales remained at the same level as the preceding fiscal year due to the significant impact of the decline in sales in the Steel Products Business despite the steady performance of the Molding Machine Business and the Industrial Machines Business. However, operating profit increased due to solid performance of services in both the Molding Machine and Industrial Machines Businesses, as well as lower raw material and fuel prices in the Steel Products Business.
Others – Increases in both net sales and operating profit
The Pharmaceutical Business recorded an increase in net sales due to strong sales of our own pharmaceuticals and contract pharmaceuticals, as well as the effect of the acquisition of a contract drug development and manufacturing organization in December 2022. Royalty revenues also increased.
The Power Producer Business recorded a decrease in net sales due to a decline in the prices of electricity sold in line with the fall in coal prices.
The Others segment as a whole recorded increases both in net sales and operating profit due largely to the acquisition of a contract drug development and manufacturing organization and royalty income in the Pharmaceutical Business.
Cement-Related Business (Equity-Method Affiliate “Mitsubishi UBE Cement Corporation”)
Although sales volume of cement decreased in the domestic market, we adjusted selling prices to reflect the soaring coal and other energy prices and reduced costs. In the overseas (North American) market, profitability improved due to the shipment of ready-mixed concrete, which had been delayed by unreasonable weather during the January- March 2023 period, and the rise in selling prices. As a result, profitability of the Cement-Related Business improved significantly.