Daicel reports 25% operating income drop amid headwinds

Daicel Corporation reported first-quarter net sales fell 4.3% to 139.3bn yen, while operating income dropped 25.3% to 13.0bn yen. Net income attributable to owners declined 40.6% to 9.6bn yen.

The declines stemmed from foreign exchange fluctuations, customer inventory adjustments for acetate tow, and the transfer of its resin compound business.

However, the Safety business saw increased airbag inflator sales in China and India, while the Medical/Healthcare segment posted 9.9% sales growth and 72.3% operating income growth.

The company maintained its first-half forecasts and annual dividend of 60 yen per share.