Segment Information

Fiscal 2018 Results (2018 April 1 to 2019 March 31)

Advanced Materials

Advanced Plastics

Automobile components (Fortron KPS)

In the PGA business, higher sales volumes of frac plugs for shale gas and oil extraction enabled a significant decrease in the operating loss. While this business is still not performing as originally envisaged, it is clearly gaining momentum. Kureha’s innovative degradable frac plugs have now been adopted by 17 field operators in the United States, up by 13 since the beginning of FY2018. Full-bore trials with major operators are ongoing, and contract negotiations are under way. The first field trial for an improved ultra-low temperature grade frac plug has been successfully completed, and other location trials are being prepared.

Demand for PVDF, an LiB binder material for which Kureha holds a 40% worldwide market share, continued to grow at a rapid rate due to the expanding global market for electric and plug-in hybrid electric vehicles, particularly in China. All of Kureha’s PVDF plants are now operating at full capacity, including the latest addition in Iwaki launched in 2019.

The polyphenylene sulfide (PPS) business continued to see demand growth for automotive applications, since its combination of light weight and heat stability makes it an excellent replacement for metals. However, operating profit continued to be affected by Hurricane Florence, which in September 2018 severely disrupted production at Fortron Industries, a Kureha’s joint venture.

Carbon Products

Insulating materials for high temperature
furnaces (KRECA FR)

The carbon products business continued to see healthy growth, driven by demand for heat-insulating materials used in the manufacturing of ingots for semiconductors, as well as the positive benefits of higher prices and operational improvements during the previous fiscal year.

Revenue & Operating Income

Revenue Composition

Specialty Chemicals

Pharmaceuticals and Agrochemicals

Therapeutic agent for chronic renal failure
(KREMEZIN)

In the pharmaceuticals business, sales volumes increased for the new tablet version of Kremezin, a therapeutic agent for chronic kidney disease, which was launched in FY2017, leading to a rise in operating profit that more than offset the negative effect of national drug price revisions.

In the agrochemicals business, inventory adjustments affected sales volumes of fungicides, leading to reduced revenue and operating profit.

Industrial Chemicals

Organic Chemicals (Para-Dichlorobenzene)

The industrial chemicals business saw increases in both revenue and operating profit following measures to improve the operating margin including price adjustments and cost reductions.

Revenue & Operating Income

Revenue Composition

Specialty Plastics

Consumer Products

Household wrap film (NEW Krewrap)

While the home products business saw higher sales volumes of Kureha’s flagship NEW Krewrap plastic wrap and the Kichinto-san product series, operating profit growth was more than offset by rising costs related to raw materials and sales promotion.

Kureha continued to enjoy strong sales volumes of Seaguar fishing lines in North America, leading to an increase in operating profit for this business.

Food Packaging Materials

Food packaging film (Krehalon ML)

Lower sales volumes of heat-shrink multilayer film in overseas markets, caused by intense competition, led to decreases in revenue and operating profit.

Revenue & Operating Income

Revenue Composition

Construction and Other Operations

Construction

Construction work

Lower demand for private sector construction projects affected earnings, more than offsetting healthy sales volume growth for public projects in the engineering business.

Other Operations

Industrial waste treatment facility

In the environmental engineering business, Kureha’s industrial waste treatment business continued on the growth trajectory seen since the previous year.

In the logistics business, operating profit continued to rise despite lower revenue, primarily due to successful measures to boost operational efficiency and cut costs.

In the hospital business, revenue returned to a growth track, leading to an increase in operating profit.

Revenue & Operating Income

Revenue Composition