08.02.21
Osaka, Japan
www.kansai.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1918
REVENUE: $3.77 billion t (2019: $3.78 billion)
MARKETS SERVED
Automotive coatings; Decorative coatings; Industrial coatings; Marine and protective coatings
KEY EXECUTIVES:
Hiroshi Ishino, CEO; Kunishi Mori, president; board of directors: Masaru Tanaka, Koji Kamikado, Hidenori Furukawa, Jun Senoo, Shinji Asatsuma.
Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets, including automotive, decorative, industrial and marine coatings. It divides its business into automotive (26%), automotive refinish (5%) industrial (28%), decorative (27%), marine and protective (6%) and Others (8%).
By region, Japan comprises 35% of sales, India 20%, Asia 17%, Africa 9%, Europe 17% and Others 2%.
Kansai Paint operates three automotive paint plants from its headquarters in Osaka, Japan and is the leading supplier of automotive coatings to Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide. The company employs 16,459 people.
The company reported sales of $3.77 billion, a 4.8% decrease over the previous year. Despite growth in local currency bases in Europe and the U.S., Kansai’s consolidated net sales were adversely affected by currency conversions stemming from currency depreciation mainly in developing nations. Furthermore, with a decrease in automobile production in Japan, India and Asia, and other factors, consolidated net sales were down on the previous year.
Overview of Financial Results by Segment
Japan: In the new car area of the automotive coatings sector, sales fell short of the previous year, reflecting a year on year decrease in car production and exports. Sales in the industrial coatings sector decreased year on year as paints for automotive components and paints for industrial machinery that had recorded robust sales became sluggish in the second half. The decorative coatings and protective coatings sectors saw slight year on year increases in sales amid robust growth of the market. Sales in the marine sector decreased slightly year on year despite a recovery mainly in sales of paints for ship repair. In the automotive coatings sector (for refinishing), sales decreased year on year in a weak market despite intensive efforts to expand sales of high-value-added products. As a result of those factors, net sales in the segment were 155,078 million yen (down 2.7% year on year).
Asia: In China, reflecting a year on year decrease in car production, sales in the automotive coatings sector decreased year on year despite expanded demand from major customers. In the industrial coatings sector, sales decreased year on year in paints for construction machinery due to weaker demand from major customers. As a result, net sales decreased year on year in China as a whole. In Indonesia, amid the strong sense of decelerated economy, sales in the automotive coatings sector decreased year on year, reflecting a decline in car production compared with the last year. Also in Thailand, sales decreased year on year following a decline in car production. As a result of those factors, net sales of the segment were 60,176 million yen (down 5.7% year on year).
Africa: Amid the sluggish economy in South Africa and neighboring countries, Kansai Paint continued to promote sales. Despite a decline in raw material prices and improvement in profitability compared with the same period last year, the company continued to face significant pressure from currency depreciation and the intensified price competition. As a result of those factors, net sales of the segment were 35,742 million yen (down 9.4% year on year).
Europe: In Turkey, while sales in the local currency increased, profitability was negatively affected by the rise of raw material prices due to the weaker local currency. Meanwhile, equity in earnings of affiliates increased despite sluggish demand in the decorative coatings sector on the back of a weaker domestic economy. In other European countries, sales in local currencies increased mainly in the industrial coatings sector which enjoyed strong growth. However, the translated result in Japanese yen was negatively affected by currency conversion. As a result of those factors, net sales of the segment were 68,168 million yen (down 5.2% year on year).
Others: Sales grew in North America, owing to efforts to expand sales of paints for automotive components in the industrial coatings sector. Equity in earnings of affiliates also increased. As a result of those factors, net sales of the segment were 6,021 million yen (up 1.1% year on year).
Recently Launched Products:
Kansai recently developed a new range of blues created using its database analysis. The new range of blues was created by analyzing the characteristics of its most popular blue using the company's original auto body color database. “Ocean Blue Next” expresses depth with purity, and was developed based on Kansai Paint's sophisticated technical skills and market analysis capabilities.
• New Black for Self-driving: LiDAR is a sensing technology for self-driving cars in which distance is measured by detecting light reflected back from objects that have been illuminated with an infrared laser. However, LiDAR’s detection sensitivity markedly declines for objects with a high degree of jet blackness. Developed this year, "Black Panther" employs Kansai’s unique technology to ensure high reflectivity even in the infrared range, and this enables the detection of infrared light reflected off it even while it retains a jet black design.
• Global Trend Colors: "Linen Velvet" is one of the “Global trend colours” of the Kansai Paint Group. It was devised together with experts in color development from seven countries, primarily in Asia, based on the latest lifestyles in each country and surveys of color trends at motor shows and other events. Keeping in mind the characteristics of linen velvet – which includes an elegant texture – this color was developed by utilizing the gentle luster of pearl pigment.
www.kansai.com
PUBLIC COMPANY; YEAR ESTABLISHED: 1918
REVENUE: $3.77 billion t (2019: $3.78 billion)
MARKETS SERVED
Automotive coatings; Decorative coatings; Industrial coatings; Marine and protective coatings
KEY EXECUTIVES:
Hiroshi Ishino, CEO; Kunishi Mori, president; board of directors: Masaru Tanaka, Koji Kamikado, Hidenori Furukawa, Jun Senoo, Shinji Asatsuma.
Operating in Japan, Europe, the U.S., Southeast Asia, India and China, Kansai Paint Co. Ltd. offers a broad range of coatings solutions for various markets, including automotive, decorative, industrial and marine coatings. It divides its business into automotive (26%), automotive refinish (5%) industrial (28%), decorative (27%), marine and protective (6%) and Others (8%).
By region, Japan comprises 35% of sales, India 20%, Asia 17%, Africa 9%, Europe 17% and Others 2%.
Kansai Paint operates three automotive paint plants from its headquarters in Osaka, Japan and is the leading supplier of automotive coatings to Toyota, Suzuki, Nissan, Honda, Peugeot and Renault worldwide. The company employs 16,459 people.
The company reported sales of $3.77 billion, a 4.8% decrease over the previous year. Despite growth in local currency bases in Europe and the U.S., Kansai’s consolidated net sales were adversely affected by currency conversions stemming from currency depreciation mainly in developing nations. Furthermore, with a decrease in automobile production in Japan, India and Asia, and other factors, consolidated net sales were down on the previous year.
Overview of Financial Results by Segment
Japan: In the new car area of the automotive coatings sector, sales fell short of the previous year, reflecting a year on year decrease in car production and exports. Sales in the industrial coatings sector decreased year on year as paints for automotive components and paints for industrial machinery that had recorded robust sales became sluggish in the second half. The decorative coatings and protective coatings sectors saw slight year on year increases in sales amid robust growth of the market. Sales in the marine sector decreased slightly year on year despite a recovery mainly in sales of paints for ship repair. In the automotive coatings sector (for refinishing), sales decreased year on year in a weak market despite intensive efforts to expand sales of high-value-added products. As a result of those factors, net sales in the segment were 155,078 million yen (down 2.7% year on year).
Asia: In China, reflecting a year on year decrease in car production, sales in the automotive coatings sector decreased year on year despite expanded demand from major customers. In the industrial coatings sector, sales decreased year on year in paints for construction machinery due to weaker demand from major customers. As a result, net sales decreased year on year in China as a whole. In Indonesia, amid the strong sense of decelerated economy, sales in the automotive coatings sector decreased year on year, reflecting a decline in car production compared with the last year. Also in Thailand, sales decreased year on year following a decline in car production. As a result of those factors, net sales of the segment were 60,176 million yen (down 5.7% year on year).
Africa: Amid the sluggish economy in South Africa and neighboring countries, Kansai Paint continued to promote sales. Despite a decline in raw material prices and improvement in profitability compared with the same period last year, the company continued to face significant pressure from currency depreciation and the intensified price competition. As a result of those factors, net sales of the segment were 35,742 million yen (down 9.4% year on year).
Europe: In Turkey, while sales in the local currency increased, profitability was negatively affected by the rise of raw material prices due to the weaker local currency. Meanwhile, equity in earnings of affiliates increased despite sluggish demand in the decorative coatings sector on the back of a weaker domestic economy. In other European countries, sales in local currencies increased mainly in the industrial coatings sector which enjoyed strong growth. However, the translated result in Japanese yen was negatively affected by currency conversion. As a result of those factors, net sales of the segment were 68,168 million yen (down 5.2% year on year).
Others: Sales grew in North America, owing to efforts to expand sales of paints for automotive components in the industrial coatings sector. Equity in earnings of affiliates also increased. As a result of those factors, net sales of the segment were 6,021 million yen (up 1.1% year on year).
Recently Launched Products:
Kansai recently developed a new range of blues created using its database analysis. The new range of blues was created by analyzing the characteristics of its most popular blue using the company's original auto body color database. “Ocean Blue Next” expresses depth with purity, and was developed based on Kansai Paint's sophisticated technical skills and market analysis capabilities.
• New Black for Self-driving: LiDAR is a sensing technology for self-driving cars in which distance is measured by detecting light reflected back from objects that have been illuminated with an infrared laser. However, LiDAR’s detection sensitivity markedly declines for objects with a high degree of jet blackness. Developed this year, "Black Panther" employs Kansai’s unique technology to ensure high reflectivity even in the infrared range, and this enables the detection of infrared light reflected off it even while it retains a jet black design.
• Global Trend Colors: "Linen Velvet" is one of the “Global trend colours” of the Kansai Paint Group. It was devised together with experts in color development from seven countries, primarily in Asia, based on the latest lifestyles in each country and surveys of color trends at motor shows and other events. Keeping in mind the characteristics of linen velvet – which includes an elegant texture – this color was developed by utilizing the gentle luster of pearl pigment.