This website uses cookies. Using this site will signify that you agree with all terms of our Privacy Policy.close

Financial/Performance Highlights


Font Size
  • Normal
  • Larger

Overview of Results for FY2020

During the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021), the world economy remained harsh due to the global fallout from the novel coronavirus pandemic. Although signs of recovery emerged thanks to national stimulus packages, progress in vaccination and other positive factors, the pandemic has yet to be contained, causing the outlook for the future to remain unclear.
Against this backdrop, the MGC Group nevertheless saw consistently strong demand for its semiconductor-related products and optical polymers. On the other hand, demand for such offerings as automotive-related products fell in the first half due to the novel coronavirus pandemic, while, at the same time, market prices remained sluggish for general-purpose products. However, the second half brought overall recovery in demand, along with upturns in methanol market prices.
In these circumstances, the MGC Group strove to execute basic policies under “MGC Advance2020,” a medium-term management plan. More specifically, the Group endeavored to improve its corporate value by promoting such strategies as “Strengthening the earning power of existing businesses with a focus on core businesses,” “Creating and developing new businesses,” and “Implementing investment strategies to form an optimal business portfolio.”

Net sales

The MGC Group’s net sales decreased year on year due primarily to a drop in the sales volume of general-purpose aromatic chemicals and foamed plastics.

Operating income

Group operating income rose year on year, despite increases in repair and other fixed costs, thanks primarily to growth in the sales volume of semiconductor-related products and optical polymers, along with lower raw material and fuel prices.

Ordinary income

Ordinary income increased due to the higher operating income as well as improvement in equity in earnings of affiliates related to overseas methanol producing companies that reflected the absence of one-off costs (7.8 billions of yen) recorded in the previous fiscal year in connection with a joint venture in Saudi Arabia.

Profit attributable to owners of the parent

Profit attributable to owners of the parent grew, despite such factors as growth in impairment losses and a decrease in gain on sales of investment securities, due mainly to the increase in ordinary income.

Results by Business Segment

Basic Chemicals

The methanol business saw an improvement in earnings thanks mainly to an upturn in market prices in the second half.
Methanol and ammonia-based chemicals posted a decrease in earnings compared with the previous fiscal year due mainly to a decline in market prices of MMA-based products and an increase in repair costs.
Specialty aromatic chemical products posted earnings on par with the previous fiscal year, due mainly to remarkable second-half recovery in the sales volume of meta-xylenediamine, which had previously been affected by first-half plunge in demand, in addition to solid sales of aromatic aldehydes.
General-purpose aromatic chemical products suffered decreases in net sales and earnings compared with the previous fiscal year. This was, despite lower raw material and fuel prices, mainly attributable to sluggish sales volumes of meta-xylene and purified isophthalic acid, as well as lower sales prices of these offerings.
Foamed plastics were buoyed by second-half recovery in demand in the automotive industry, which had been hit by demand stagnation in the first half, and growing product needs associated with food packaging and civil engineering. Reflecting these and other factors, earnings from these offerings were virtually unchanged from the previous fiscal year.

Specialty Chemicals

Inorganic chemicals posted an increase in earnings compared with the previous fiscal year thanks primarily to growth in the sales volume of chemicals for use in semiconductor manufacturing.
Earnings from engineering plastics were on par with the previous fiscal year thanks mainly to second-half recovery in demand for polycarbonates and polyacetal for automotive and other applications, despite lower first-half demand in these fields.
Optical materials were somewhat affected by signs of stagnation in sales volume in the fourth quarter due to such factors as shortages of semiconductors and inventory adjustments carried out by customers. However, these offerings posted increases in net sales and earnings due to the growing use of multiple camera lenses in smartphones and growth in optical polymer sales volume thanks to measures executed in October 2019 to enhance production capacity.
Electronic materials saw increases in net sales and earnings. This was mainly attributable to growing demand for products used in data centers and other ICT-related fields as well as the higher sales volume of BT materials for semiconductor packaging, the core product category for electronic materials, reflecting the introduction of a new product for use in antenna-in-package substrates to be installed in 5G-compatible smartphones.
Oxygen absorbers such as AGELESS™ posted an increase in earnings compared with the previous fiscal year, despite a decline in demand for offerings used in souvenirs and other tourism-related products, thanks mainly to a solid volume of exports.