Kuraray Co ( (KURRY) ) has released its Q1 earnings. Here is a breakdown of the information Kuraray Co presented to its investors.
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Kuraray Co., Ltd. is a Japanese chemical company listed on the Tokyo Stock Exchange, specializing in the production of chemicals, resins, and fibers, with a focus on innovative materials like PVOH resin and GENESTAR™ heat-resistant polyamide resin.
In its latest earnings report for the first quarter of 2025, Kuraray Co. reported a modest increase in net sales by 1.4% to ¥194,804 million compared to the same period last year. However, the company faced significant declines in operating income and net income, which fell by 35.2% and 44.4% respectively, reflecting challenges in the global economic environment and rising costs.
The company’s Vinyl Acetate segment saw a slight increase in sales, but profits were adversely affected by higher raw material costs and inventory valuation issues. The Isoprene segment performed well, with a 14.8% increase in sales, driven by stable operations in Thailand and strong demand in Europe and the U.S. Meanwhile, the Functional Materials segment faced setbacks due to production difficulties in the U.S., resulting in a 2.3% decrease in sales.
Looking ahead, Kuraray Co. maintains its full-year forecast, anticipating a 4.0% increase in net sales and a 5.8% rise in operating income, despite the current economic uncertainties. The company plans to continue its focus on innovation and market expansion to navigate the challenging landscape.
Kuraray Co. remains committed to shareholder returns, maintaining a dividend forecast of ¥54 per share for the fiscal year 2025 and announcing a share buyback program to enhance shareholder value.