Japan'S Chemical Fiber Enterprises Lowered Operating Targets For 2008

In the first quarter of 2008, the financial data of 7 large chemical fiber production enterprises in Dongli, Japan and Japan showed that the sales volume of the other 5 enterprises decreased significantly, except for the slight increase in the sales volume of the two enterprises.

Sales profits fell more than 10% of the total number of enterprises, 6 of which were even deficits.

One of the main reasons is that the impact of crude oil price increase on chemical fiber production enterprises is more than that estimate at that time.

Against this background, 3 enterprises such as Dongli, emperor, MITSUBISHI and Liyang decided to reduce their annual business targets.

Although 3 companies have said they will eliminate the impact of rising oil prices by raising product prices and increasing value-added products, they all consider it difficult to achieve this year.

Dongli company adjusted its targets according to the first quarter's product sales situation, and cut the sales profit by 20 billion yen in the case of maintaining the annual sales revenue unchanged.

Among them, the sales revenue and sales profit of textile business were reduced by 10 billion yen and 7 billion yen respectively.

The company also reduced its sales profit by 7 billion yen, while the sales revenue of textile business increased by 10 billion yen, but sales profit dropped by 8 billion yen.

MITSUBISHI Li Yang's downgrade was the largest, sales revenue was down 25 billion yen, sales profit was down 18 billion yen, and the original 9 billion yen sales profit was simply adjusted to zero.

The annual operating status of Asahi Asahi is usually expected to be released after the second quarter results are released, but the company's personnel said that its sales profits in 2008 would be 12 billion 500 million yen lower than originally expected.

The main reason for the deterioration of the operating index of chemical fiber enterprises in the first quarter is the soaring price of crude oil.

Most of Japan's large-scale chemical fiber companies make the first quarter production and operation plan, mostly based on the premise that the crude oil price is 100 US dollars per barrel, but the actual price of crude oil is far beyond the original estimate.

Against this background, chemical fiber companies have to adjust the crude oil cost to $120 per barrel.

The price of crude oil has greatly increased the price of polyester fiber and acrylic fiber raw materials, and chemical fiber enterprises can not pass this part of the cost in the short term, nor can they substantially adjust the production plan.

Most of the chemical fiber manufacturers believe that the high price of crude oil will continue in the future, and the appreciation of the yen will lead to the deterioration of some of the export performance.

Insiders predict that in the future, there will be more chemical fiber enterprises to reduce their business targets in 2008.