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Ube Industries hit by weak Japanese demand

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World Cement,

Ube Industries, a Japanese industrial conglomerate and owner of the Isa cement plant, has reported falling domestic cement sales over three quarters to 31 December 2016. Cement exports remains strong, however.

Overall, the company’s Cement & Construction Materials Segment recorded net sales of JPY169.3 billion, compared to JPY179.8 billion over the same period in 2015 – a 5.9% fall – as export strength was not enough to compensate of weakness in the Japanese market.

Operating income was further hit by rising coal prices, which increased the company’s cost of production. Income for the three-quarter period fell 20.9% to JPY12.4 billion, compared to JPY15.7 billion in 2015.

Shipments of calcia and magnesia products – also included in the Cement & Construction Materials Segment results – remained steady.

Overall, the company – which also includes chemicals, pharmaceuticals, machinery and energy segments – reported profit down 21.6% at JPY15 billion on net sales of JPY439.0 billion.

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