Top Companies Report

1. DIC Corporation


1. DIC Corporation
(Including Sun Chemical Corporation)
DIC Building
7-20 Nihonbashi 3-chome
Chuo-ku, Tokyo, Japan 103-8233
Tel: +81 3-5203-7838
Fax: +81 3-3273-7586
Sun Chemical:

Sales: DIC: $4.52 billion (¥372 billion) in graphic arts, including Sun Chemical, which has more than $3.5 billion in sales. Total sales: $8.92 billion (¥734.3 billion).

Major Products: Broad product portfolio with capabilities in web heatset and sheetfed offset; publication and packaging gravure; news ink and publication coldset; flexographic packaging inks; corrugated packaging inks; energy curable inks and coatings; screen inks, toner, inkjet materials, adhesives for packaging, overprint varnishes, specialty coatings, effect inks, security inks and coatings, printing consumables and organic pigments for inks, plastics, paints, coatings and cosmetics.

Key Personnel: Yoshiyuki Nakanishi, president and CEO; Masayuki Saito, senior managing executive; Kazunari Sakai, executive officer, general manager, Printing Ink Products Division; Akira Konishi, managing executive officer.

Number of Employees: Approximately 20,455 worldwide.

Comments: DIC Corporation faced a challenging year in fiscal year 2011, ending March 31, 2012, as the company’s sales declined 5.7% to ¥734.3 billion ($8.92 billion). The Printing Inks & Supplies segment, which includes Sun Chemical’s ink operations, were also hard hit, with sales declining 8% to ¥372 billion ($4.52 billion). Higher raw material prices, led by rosins and titanium dioxide, among others, had a negative impact on operating profits.

The Printing Inks & Supplies Division faced numerous challenges worldwide in 2011. Domestic sales for the division fell 5.7% to ¥91.9 billion ($1.12 billion) in 2011. Notably, gravure ink sales were flat overall for the year, with increased demand for flexible packaging in the wake of the Great East Japan Earthquake, but sales of gravure inks were impacted by difficulties in procuring certain raw materials – also due to the earthquake – for production. Sales of offset and news inks continued to decline. However, operating income increased 14.5%, as the company was able to increase pricing to reflect higher raw materials costs.

DIC Corporation and its subsidiary, Sun Chemical, faced difficult times in the Americas and Europe, with net sales falling 11.3% to ¥227.7 billion ($2.77 billion). Operating profit declined 43.2% to ¥4.3 billion ($52.3 million). While sales of packaging inks rose slightly, shrinking print runs for magazines and newspapers and other factors pushed sales of publishing inks and news inks down significantly, according to the company. Results were similar in Central and South America, where sales were even with the previous fiscal year, as sales of packaging inks were brisk and offset inks decreased.

The Asia and Oceania region was strongest for DIC, with net sales slightly down by 0.7% to ¥60.6 billion. Still, operating income declined 15.5%, as DIC found it difficult to pass along price increases in China. In spite of growing sales of news inks, overall sales in the People’s Republic of China (PRC) declined. Ink sales in Southeast Asia increased slightly, driven by gravure inks, while sales in Oceania remained flat. In India, sales rose, led by strong offset ink sales.