Japanese metalworking fluids and industrial oil producer Yushiro Chemical Industry Co. reported steep drops in operating profit and sales for the quarter ending Dec. 31, though it noted its manufacturing customers showed signs of recovery during the quarter.
Yushiro said its operating profit dropped 77% to ¥412 million (U.S. $3.8 million) for the quarter – the third quarter of its fiscal year starting April 1 – down from ¥1.8 billion operating income in the year-earlier period.
Sales for the quarter declined 20% to ¥22.7 billion, down from ¥28.4 billion.
Profit for each of the company’s regional business segments is based on operating income. Yushiro noted in its explanation of business results that the economic recovery in different regions depends on the infection trends in each country and the measures taken to deal with the pandemic. The company said its main customers – Japanese automobile makers and automotive parts manufacturers – started to recover considerably during the quarter, with some differences, depending on manufacturer and region.
In its home country, Yushiro’s sales decreased 20% year-on-year to ¥10.4 billion, and the Japan segment reported a ¥99 million operating loss, compared to a ¥656 million profit in the same period in 2019.
In the Americas, sales decreased 19% year-on-year to ¥7 billion in the quarter, and segment profit dropped 53% to ¥368 million. The company noted that automobile production in the Americas showed signs of recovery.
In China, sales decreased 9% year-on-year to ¥3 billion yen, and segment profit decreased 5% to ¥203 million. According to Yushiro, business in China recovered rapidly in 2020 after the peak of the spread of the pandemic.
In Southeast Asia and India, sales slid 32% to ¥2.3 billion, and profit decreased 52% to ¥216 million, down from ¥452 million.