Recently, major Japanese chemical companies reported generally poor earnings in the first half of the fiscal year 2024-2025 ending September 30 due to rising raw material costs. However, sales generally increased year-on-year due to price increases and improved demand.

Mitsubishi Chemical's earnings were lower in the first half of the fiscal year, but it maintained its full-year profit forecast. The company said that sales increased in six months amid signs of market recovery, but it lowered its full-year sales revenue forecast due to uncertain and unstable prospects. Mitsubishi Chemical's net profit fell 39.1% year-on-year to 40.9 billion yen in the first half of the fiscal year; sales increased 4.3% to 2.24 trillion yen; operating profit fell 1.4% year-on-year to 136.7 billion yen. Mitsubishi Chemical said that in the six-month period, the business generally maintained a mild recovery.

Shin-Etsu Chemical's net profit fell 2.4% year-on-year to 294.1 billion yen in the first half of the fiscal year; operating profit increased 6.2% year-on-year to 405.7 billion yen; sales were 1.2 trillion yen, an increase of 5.9%. The company said it noted strong demand for hard disk drives and will focus on expanding sales to the automotive market.

Toray's net profit for the first half of the fiscal year increased 92.6% year-on-year to 55.5 billion yen; sales increased 7.9% to 1.2 trillion yen; operating profit was 79.5 billion yen, up 78.9% year-on-year. Apparel applications generally remained strong despite stagnant European markets and increased competition for overseas products. Demand for automotive applications was recovering in the first half of the fiscal year, but it was weakened by the safety testing scandal involving Japanese automakers and increased competition in China's electric vehicle market.

Mitsui Chemicals reported a 7.2% year-on-year increase in net profit to 22.2 billion yen in the first half of the fiscal year; sales increased 8% year-on-year to 890.4 billion yen; operating profit was 46 billion yen, up 47.4% year-on-year. Its elastomer business performed weakly, with sales of polypropylene compounds remaining flat year-on-year. Operating losses in its basic materials and green materials businesses narrowed due to inventory revaluation gains caused by rising raw material costs such as naphtha.

Tosoh's sales for the first half of the fiscal year increased 8.6% year-on-year due to increased production due to strong demand. The weaker yen and higher naphtha costs also contributed to the increase in product sales prices. Tosoh's operating profit also increased by 47.6% year-on-year to 47.3 billion yen, thanks to increased sales, expanded sales in the engineering business and improved inventory balance.