DIC Reports Consolidated 1H 2024 Financial Results

DIC Corporation reported its consolidated financial results for the six months ended June 30, 2024. In the six months ended June 30, 2024, DIC Corporation’s consolidated net sales increased 4.6%, to ¥538.8 billion ($3.66 billion). Operating income rose 120.3%, to ¥21.9 billion ($150 million).

“Looking at key global economies, in the Americas and Europe there were signs of gradual changes in monetary policy in response to the easing of inflationary pressures, including the European Central Bank’s decision to reverse course and lower interest rates, while in the People’s Republic of China (PRC) an uncertain economic outlook endured, owing to a persistently sluggish real estate market and other factors,” DIC reported. s

Packaging & Graphic segment sales increased 7.4%, to ¥286.4 billion ($1.94 billion). Segment operating income increased 96.4%, to ¥16.3 billion ($111 million).

“In the area of packaging inks, used chiefly on packaging for food products, shipments in Japan declined, as rising prices continued to dampen demand for consumer goods, but sales were buoyed by efforts to adjust sales prices,” DIC reported. “Sales were also up overseas, underpinned by a revival in demand for consumer goods in the Americas and Europe, as well as by efforts to cultivate customers in Asia, notably in the PRC, which boosted shipments.

“Despite expanded shipments in Asia, owing to a recovery in demand and the cultivation of customers, sales of publication inks, which center on inks for commercial printing and news inks, fell as dwindling demand pushed shipments down in Japan, as well as in the Americas and Europe,” DIC added. “Sales of jet inks, used in digital printing, climbed sharply as customers completed measures to resolve surplus inventories and demand rallied. Segment operating income soared 96.4%, to ¥16.3 billion.”

Color & Display segment sales increased 13.9%, to ¥134.83 billion ($910 million). The segment reported an operating gain of ¥0.4 billion ($27 million).

“While demand for pigments for coatings and for plastics has failed to recover fully, owing to a delayed economic revival in Europe, a leading market for these products, shipments increased, as the completion of inventory adjustments by customers sparked the resumption of moves to secure new inventory,” DIC noted.