Company News
November 2, 2020
Tosoh Results
Tosoh Reports Its Consolidated Results for Fiscal 2020
October 30, 2020 –
Tokyo, Japan—Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2021, from April 1, 2020, to September 30, 2020.
The company’s consolidated net sales amounted to ¥328.5 billion (US$3.1 billion), down ¥67.9 billion, or 17.1%, from the same period a year earlier. The decrease was attributable to a contraction in global demand caused by the spread of the coronavirus and to the resulting decline in overseas market conditions for naphtha and other products.
Operating income also decreased, ¥22.8 billion, or 56.3%, over the same period the preceding year, to ¥17.6 billion (US$164.6 million). Lower sales volumes, worsening trade conditions as declining sales prices exceeding the impact of lower raw material and fuel prices, and a deterioration in the difference between product receipt and payment contributed to the decrease in operating income.
Ordinary income was ¥18.0 billion (US$168.4 million), a decrease of ¥23.9 billion, or 57.1%, compared with the first half of fiscal 2020. Profit attributable to owners of the parent company totaled ¥11.7 billion ((US$109.4 million), a decrease of ¥15.1 billion, or 56.3%, over the same term the previous year.
During the period under review, the spread of the coronavirus brought about restrictions on economic and social activities and rapid declines in demand domestically and abroad. These conditions led to a rapid decline in both Japanese and global economies. As for the global economy, China, which resumed economic activity early, is experiencing an economic recovery. However, the number of infections continues to rise in Europe, the United States, and emerging countries. And the pace of recovery in demand varies by region, due to the different timing and extent of easing of restrictions on economic activity, as well as to regional economic measures. Given this, prolonged economic stagnation remains a concern.
Results by Business Segment
Chlor-alkali Group
The Chlor-alkali Group’s net sales decreased ¥28.4 billion, or 19.3%, to ¥119.0 billion (US$1.1 billion). Its operating income likewise fell, ¥10.3 billion, or 91.6%, to ¥0.9 billion (US$8.4 million), on account of the decline in sales prices exceeding the impact of lower raw material and fuel prices, as well as decreased shipments of urethane raw materials and polyvinyl chloride (PVC) resin.
An increase in production volume led to an increase in shipments of caustic soda, primarily for export. And product prices fell, reflecting the deterioration in overseas market conditions. Shipments of vinyl chloride monomer (VCM) rose in line with an increase in production volume, and worsening market conditions abroad and falling naphtha prices exerted downward pressure on product prices. The spread of coronavirus infection suppressed demand for PVC resin both domestically and overseas, leading to a decrease in shipments. And worsening market conditions abroad caused product prices to fall.
Domestic shipments of cement decreased due to sluggish demand.
Domestic and export shipments of methylene diphenyl diisocyanate (MDI) fell due to the impact of the coronavirus. Moreover, product prices fell, reflecting the decline in overseas markets. Shipments in Japan and abroad of hexamethylene diisocyanate (HDI) hardeners decreased as the spread of the coronavirus suppressed demand.
Specialty Group
Compared with the first half of the previous fiscal year, net sales by the Specialty Group decreased ¥7.5 billion, or 8.0%, to ¥86.7 billion (US$811.0 million). The group’s operating income also decreased, 26.5%, or ¥4.1 billion, to ¥11.3 billion (US$105.7 million). The decreases in net sales and operating income resulted from lower sales volume caused by the spread of the coronavirus.
The decline in demand brought about by the spread of the coronavirus led to a decrease in ethyleneamine domestic shipments.
Among the Specialty Group’s separation media-related products, shipments of packing materials for liquid chromatography, mostly to Europe and the United States, increased. Diagnostic-related product shipments, especially of in vitro diagnostic reagents bound for Europe, the United States, and China, fell due to sluggish demand attributable to the spread of the coronavirus.
Shipment of high-silica zeolites, mainly for automotive exhaust gas catalyst applications, decreased due to flagging demand caused by the coronavirus. Shipments of zirconia for decorative applications, however, increased. Shipments of quartz glass likewise increased, buoyed by a robust semiconductor market.
November 2, 2020
Tosoh Results
Tosoh Reports Its Consolidated Results for Fiscal 2020
October 30, 2020 –
Tokyo, Japan—Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2021, from April 1, 2020, to September 30, 2020.
The company’s consolidated net sales amounted to ¥328.5 billion (US$3.1 billion), down ¥67.9 billion, or 17.1%, from the same period a year earlier. The decrease was attributable to a contraction in global demand caused by the spread of the coronavirus and to the resulting decline in overseas market conditions for naphtha and other products.
Operating income also decreased, ¥22.8 billion, or 56.3%, over the same period the preceding year, to ¥17.6 billion (US$164.6 million). Lower sales volumes, worsening trade conditions as declining sales prices exceeding the impact of lower raw material and fuel prices, and a deterioration in the difference between product receipt and payment contributed to the decrease in operating income.
Ordinary income was ¥18.0 billion (US$168.4 million), a decrease of ¥23.9 billion, or 57.1%, compared with the first half of fiscal 2020. Profit attributable to owners of the parent company totaled ¥11.7 billion ((US$109.4 million), a decrease of ¥15.1 billion, or 56.3%, over the same term the previous year.
During the period under review, the spread of the coronavirus brought about restrictions on economic and social activities and rapid declines in demand domestically and abroad. These conditions led to a rapid decline in both Japanese and global economies. As for the global economy, China, which resumed economic activity early, is experiencing an economic recovery. However, the number of infections continues to rise in Europe, the United States, and emerging countries. And the pace of recovery in demand varies by region, due to the different timing and extent of easing of restrictions on economic activity, as well as to regional economic measures. Given this, prolonged economic stagnation remains a concern.
Results by Business Segment
Chlor-alkali Group
The Chlor-alkali Group’s net sales decreased ¥28.4 billion, or 19.3%, to ¥119.0 billion (US$1.1 billion). Its operating income likewise fell, ¥10.3 billion, or 91.6%, to ¥0.9 billion (US$8.4 million), on account of the decline in sales prices exceeding the impact of lower raw material and fuel prices, as well as decreased shipments of urethane raw materials and polyvinyl chloride (PVC) resin.
An increase in production volume led to an increase in shipments of caustic soda, primarily for export. And product prices fell, reflecting the deterioration in overseas market conditions. Shipments of vinyl chloride monomer (VCM) rose in line with an increase in production volume, and worsening market conditions abroad and falling naphtha prices exerted downward pressure on product prices. The spread of coronavirus infection suppressed demand for PVC resin both domestically and overseas, leading to a decrease in shipments. And worsening market conditions abroad caused product prices to fall.
Domestic shipments of cement decreased due to sluggish demand.
Domestic and export shipments of methylene diphenyl diisocyanate (MDI) fell due to the impact of the coronavirus. Moreover, product prices fell, reflecting the decline in overseas markets. Shipments in Japan and abroad of hexamethylene diisocyanate (HDI) hardeners decreased as the spread of the coronavirus suppressed demand.
Specialty Group
Compared with the first half of the previous fiscal year, net sales by the Specialty Group decreased ¥7.5 billion, or 8.0%, to ¥86.7 billion (US$811.0 million). The group’s operating income also decreased, 26.5%, or ¥4.1 billion, to ¥11.3 billion (US$105.7 million). The decreases in net sales and operating income resulted from lower sales volume caused by the spread of the coronavirus.
The decline in demand brought about by the spread of the coronavirus led to a decrease in ethyleneamine domestic shipments.
Among the Specialty Group’s separation media-related products, shipments of packing materials for liquid chromatography, mostly to Europe and the United States, increased. Diagnostic-related product shipments, especially of in vitro diagnostic reagents bound for Europe, the United States, and China, fell due to sluggish demand attributable to the spread of the coronavirus.
Shipment of high-silica zeolites, mainly for automotive exhaust gas catalyst applications, decreased due to flagging demand caused by the coronavirus. Shipments of zirconia for decorative applications, however, increased. Shipments of quartz glass likewise increased, buoyed by a robust semiconductor market.
October 30, 2020
Recticel Results
Press Release of Recticel – 30 October 2020 Trading update 3rd quarter 2020
Solid recovery following the COVID-19 crisis in first half-year 2020 Net sales 3Q2020: from EUR 212.0 million in 3Q2019 to EUR 217.4 million (+2.5%), including a -0.5% currency effect Year-to-date September 2020 net sales: from EUR 665.8 million in 9M2019 to EUR 591.6 million (-11.1%), including a -0.2% currency effect Net financial debt: EUR 9.3 million (including EUR 52.9 million IFRS 16 lease obligations) Olivier Chapelle (CEO): “After a sales decline of 32.3% in the 2nd quarter of 2020 due to COVID-19, our top-line confirms its recovery with a 2.5% growth in the 3rd quarter versus 2019. The positive sales momentum developed month after month within the quarter, with July, August and September at respectively -4.0%, +3.2% and +8.1% versus 2019. Moreover, a strong net cash flow of more than EUR 30.0 million led to a further improved net cash position on our balance sheet. The strength of the recovery, coupled with severe production issues at our raw material suppliers – including several force majeure situations –, has created critical supply issues as from September, which our suppliers have used to increase raw material prices at an historically high speed. As in past instances, our commercial teams are committed to fully neutralize these raw material price increases with selling price increases. After the divestments of the 50% participation in the Eurofoam joint venture and of 51% of the Automotive Interiors division, the Group is adapting its organizational set-up and is actively working at the re-deployment of its resources to further develop its highest value added segments.”
OUTLOOK Subject to there being no further severe COVID-19 impacts, the dynamics of the recovery observed during the second and third quarter lead the Group to confirm the 2H2020 consolidated net sales and Adjusted EBITDA of its retained business to be at the level of 2H2019.
October 30, 2020
Recticel Results
Press Release of Recticel – 30 October 2020 Trading update 3rd quarter 2020
Solid recovery following the COVID-19 crisis in first half-year 2020 Net sales 3Q2020: from EUR 212.0 million in 3Q2019 to EUR 217.4 million (+2.5%), including a -0.5% currency effect Year-to-date September 2020 net sales: from EUR 665.8 million in 9M2019 to EUR 591.6 million (-11.1%), including a -0.2% currency effect Net financial debt: EUR 9.3 million (including EUR 52.9 million IFRS 16 lease obligations) Olivier Chapelle (CEO): “After a sales decline of 32.3% in the 2nd quarter of 2020 due to COVID-19, our top-line confirms its recovery with a 2.5% growth in the 3rd quarter versus 2019. The positive sales momentum developed month after month within the quarter, with July, August and September at respectively -4.0%, +3.2% and +8.1% versus 2019. Moreover, a strong net cash flow of more than EUR 30.0 million led to a further improved net cash position on our balance sheet. The strength of the recovery, coupled with severe production issues at our raw material suppliers – including several force majeure situations –, has created critical supply issues as from September, which our suppliers have used to increase raw material prices at an historically high speed. As in past instances, our commercial teams are committed to fully neutralize these raw material price increases with selling price increases. After the divestments of the 50% participation in the Eurofoam joint venture and of 51% of the Automotive Interiors division, the Group is adapting its organizational set-up and is actively working at the re-deployment of its resources to further develop its highest value added segments.”
OUTLOOK Subject to there being no further severe COVID-19 impacts, the dynamics of the recovery observed during the second and third quarter lead the Group to confirm the 2H2020 consolidated net sales and Adjusted EBITDA of its retained business to be at the level of 2H2019.
October 29, 2020
Tempur Sealy Results
Tempur Sealy Reports Record Third Quarter Results
Thu October 29, 2020 6:37 AM|PR Newswire|About: TPX
-EPS Increased 75% to $2.29, Adjusted EPS Increased 126% to $2.94
-Net Income of $121 Million
-Trailing Twelve Month Adjusted EBITDA of $694 Million
-Announced New Long-Term Capital Allocation Strategy
PR Newswire
LEXINGTON, Ky., Oct. 29, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) announced financial results for the third quarter ended September 30, 2020.
THIRD QUARTER 2020 FINANCIAL SUMMARY
- Total net sales increased 37.9% to $1,132.3 million as compared to $821.0 million in the third quarter of 2019. On a constant currency basis(1), total net sales increased 37.7%, with an increase of 43.3% in the North America business segment and an increase of 10.1% in the International business segment.
- Gross margin was 46.8% as compared to 43.9% in the third quarter of 2019. Adjusted gross margin(1) was 46.9% in the third quarter of 2020. There were no adjustments to gross margin in the third quarter of 2019.
- Operating income increased 49.4% to $180.2 million as compared to $120.6 million in the third quarter of 2019. Operating income in the third quarter of 2020 included $45.2 million of amortization for aspirational plan stock-based compensation. Adjusted operating income(1) was $227.2 million in the third quarter of 2020. There were no adjustments to operating income in the third quarter of 2019.
- Net income increased 65.6% to $121.4 million as compared to $73.3 million in the third quarter of 2019. Adjusted net income(1) increased 114.3% to $155.4 million as compared to $72.5 million in the third quarter of 2019.
- Earnings before interest, tax, depreciation and amortization (“EBITDA”)(1) increased 85.7% to $279.9 million as compared to $150.7 million in the third quarter of 2019. Adjusted EBITDA per credit facility(1) increased 86.3% to $279.3 million as compared to $149.9 million in the third quarter of 2019.
- Earnings per diluted share (“EPS”) increased 74.8% to $2.29 as compared to $1.31 in the third quarter of 2019. Adjusted EPS(1) increased 126.2% to $2.94 as compared to $1.30 in the third quarter of 2019.
- For the trailing twelve months ended September 30, 2020, leverage based on the ratio of consolidated indebtedness less netted cash(1) to adjusted EBITDA per credit facility(1) was 1.92 times as compared to 3.22 times in the corresponding prior year period.
- Net cash provided by operating activities increased to a record $327.5 million as compared to $155.8 million in the third quarter of 2019.
Business Segment Highlights
The Company’s business segments include North America and International. Corporate operating expenses are not included in either of the business segments and are presented separately as a reconciling item to consolidated results.
North America net sales increased 43.2% to $976.5 million as compared to $682.0 million in the third quarter of 2019. On a constant currency basis(1), North America net sales increased 43.3% as compared to the third quarter of 2019. Gross margin was 44.9% as compared to 42.1% in the third quarter of 2019. Adjusted gross margin(1) was 45.0% as compared to 42.1% in the third quarter of 2019. Operating margin was 23.7% as compared to 17.6% in the third quarter of 2019. Adjusted operating margin(1) was 23.9% as compared to 17.6% in the third quarter of 2019.
North America net sales through the wholesale channel increased $266.9 million, or 44.3%, to $869.1 million, as compared to the third quarter of 2019, driven by broad-based demand across both existing and new distribution networks. North America net sales through the direct channel increased $27.6 million, or 34.6%, to $107.4 million, primarily driven by an increase of more than 100% in web sales as compared to the third quarter of 2019.
North America adjusted gross margin(1) improved 290 basis points as compared to the third quarter of 2019. The improvement was primarily driven by fixed cost leverage and productivity on higher unit volumes, brand mix and lower commodity costs. North America adjusted operating margin(1) improved 630 basis points as compared to the third quarter of 2019. The improvement was primarily driven by operating expense leverage and the improvement in gross margin.
In the U.S., Sealy’s third quarter sales growth was unfavorably impacted by supply chain constraints, primarily related to encased innerspring components. As a result, the Company could not fulfill the domestic demand for Sealy mattresses and exited the quarter with a record amount of orders to fulfill. The Company expects these supply chain constraints to continue in the short-term.
International net sales increased 12.1% to $155.8 million as compared to $139.0 million in the third quarter of 2019. On a constant currency basis(1), International net sales increased 10.1% as compared to the third quarter of 2019. Gross margin was 58.8% as compared to 53.1% in the third quarter of 2019. Operating margin was 28.8% as compared to 19.6% in the third quarter of 2019. Adjusted operating margin(1) was 29.0% as compared to 19.6% in the third quarter of 2019.
International net sales through the wholesale channel increased $10.2 million, or 9.5%, to $118.1 million as compared to the third quarter of 2019. International net sales through the direct channel increased $6.6 million, or 21.2%, to $37.7 million as compared to the third quarter of 2019.
International gross margin improved 570 basis points as compared to the third quarter of 2019. The improvement was primarily driven by favorable mix, fixed cost leverage and productivity on higher unit volumes and lower commodity costs. International adjusted operating margin(1) improved 940 basis points as compared to the third quarter of 2019. The improvement was primarily driven by the improvement in gross margin and operating expense leverage.
https://seekingalpha.com/pr/18063402-tempur-sealy-reports-record-third-quarter-results
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