On August 12, 2021 Kuraray reported that Business Results for the Second Quarter of the Fiscal Year Ending December 31, 2021(Press release, Kuraray, AUG 12, 2021, https://pdf.irpocket.com/C3405/GbYe/jzI0/lMPt.pdf [SID1234586368])
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(1) Consolidated Operating Results (Percentage changes displayed for net sales, operating income, ordinary income and net income attributable to owners of the parent are comparisons with the corresponding period of the previous fiscal year.)
(2) Consolidated Financial Position
3. Forecasts of Consolidated Financial Results for the Fiscal Year Ending December 31, 2021 (January 1, 2021 to December 31, 2021)
1. Qualitative Information regarding Business Results
(1) Overview of Consolidated Business Results In the second quarter of fiscal 2021 (January 1, 2021–June 30, 2021), the world economy was still feeling the effects of the COVID-19 pandemic, and the outlook remained unclear; however, with the United States and China in the lead, some nations and regions began to make progress on recovery. However, soaring raw material and fuel prices, material supply shortages, and rising logistics costs are pushing down corporate profits. Consequently, consolidated operating results for the second quarter of fiscal 2021 are as follows: net sales rose ¥40,290 million, or 15.4%, compared with the previous fiscal year to ¥302,296 million; operating income increased ¥10,787 million, or 55.0%, to ¥30,398 million; ordinary income increased ¥10,858 million, or 61.6%, to ¥28,496 million; and net income attributable to owners of the parent increased ¥2,549 million, or 27.8%, to ¥11,710 million. The Group’s long-term vision for its 100th anniversary coming up in 2026, Kuraray Vision 2026, is to become a "Specialty Chemical Company, growing sustainably by incorporating new foundational platforms into its own technologies." We will continue striving to optimize our business portfolio by steadily taking specific measures based on the three basic policies of Kuraray Vision 2026: pursuing competitive superiority, expanding new business fields and enhancing comprehensive strength of the Kuraray Group. In fiscal 2021, we will focus on safe and stable operations amid the pandemic as well as thoroughly implement various measures decided on during the period of the previous medium-term management plan "PROUD 2020." At the same time, we will move ahead with formulating the next medium-term management plan, which is set to start in fiscal 2022.
(1) Sales of PVA resin increased as global demand began to recover, but production was affected by the cold wave that hit the southern United States in February 2021. Sales of optical-use poval film were brisk due to an increase in demand for LCD panels, especially large displays, from the second half of the previous fiscal year. The sales volume of PVB film rose on the back of a recovery in demand for both construction and automotive applications. Sales of water-soluble PVA film steadily expanded for use in unit dose detergent packets, including for laundry and dish detergents.
(2) The sales volume of EVAL ethylene vinyl alcohol copolymer (EVOH resin) increased as demand for gas tank applications recovered, but production was affected by the cold wave in the southern United States. Isoprene Sales in this segment increased 23.2% year on year to ¥30,462 million, and segment income rose 51.7% year on year to ¥3,210 million.Functional Materials Sales in this segment increased 9.4% year on year to ¥64,721 million, and segment income rose 188.6% year on year to ¥3,042 million.
(1) In the methacrylate business, sales of spatter-blocking barrier panels and displays increased. In addition, market conditions recovered.
(2) In the medical business, the dental materials business saw brisk sales, mainly in Europe and the United States, with contributions from the launch of new products.
(3) In the environmental solutions business, there were signs of a recovery for industrial applications, and sales of activated carbon remained steady. Fibers and Textiles Sales in this segment rose 5.9% year on year to ¥29,890 million while segment income increased 20.3% year on year to ¥1,992 million