The Urethane Blog

Tosoh First Half Results

Tosoh : Reports on First-Half Consolidated Results for Fiscal 2019

Tokyo, Japan-Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2019, from April 1, 2018, to September 30, 2018.

The company’s consolidated net sales amounted to ¥424.5 billion (US$3.8 billion), up ¥32.8 billion, or 8.4%, from the same period a year earlier. The increase was attributable to higher sales prices driven by an increase in the price of naphtha and by rising overseas product markets, and to progress in the Engineering Group’s plant projects in the electronic industry.

Operating income also increased ¥1.5 billion, or 2.8%, over the same period the preceding year, to ¥56.0 billion (US$509.1 million). Although trade conditions worsened because of increased raw material and fuel prices, the increased earnings recorded by the Specialty and Engineering groups helped to drive the increase in operating income.

Ordinary income climbed ¥2.4 billion, or 4.3%, compared with the first half of fiscal 2018, to ¥60.7 billion (US$552.2 million). This rise was due to foreign exchange gains. Profit attributable to owners of the parent company totaled ¥41.7 billion (US$378.8 million), an increase of ¥1.4 billion, or 3.4%, over the same term the previous year.

Results by Business Segment

Petrochemical Group

Petrochemical Group net sales rose ¥5.0 billion, or 5.6%, to ¥93.9 billion (US$853.8 million), compared with the first half of fiscal 2018. The group’s operating income decreased ¥2.3 billion, or 22.2%, to ¥8.0 billion (US$72.6 million).

Shipments of olefin products, such as ethylene and propylene, decreased in line with a decrease in production volume due to fiscal 2019 being a scheduled maintenance year. The group, however, increased sales prices of its olefin products to reflect increased naphtha costs.

Shipments of polyethylene resin in Japan decreased, but the group again increased product prices to reflect the increase in naphtha costs. Chloroprene rubber shipments likewise decreased because of a decline in production volume, but export prices rose, driven by strong overseas demand.

Chlor-alkali Group

The Chlor-alkali Group’s net sales increased ¥12.7 billion, or 8.1%, to ¥168.7 billion (US$1.5 billion). Its operating income likewise rose, ¥157 million, or 0.6%, to ¥25.1 billion (US$227.8 million), compared with the corresponding period the preceding year.

Domestic and international shipments of caustic soda were strong. Additionally, prices were revised upward due to domestic caustic soda price adjustments. Vinyl chloride monomer shipments increased. Prices also increased, driven by improvements in overseas markets. Polyvinyl chloride resin shipments declined on account of decreased production volume, but domestic price adjustments and improved conditions in overseas markets likewise resulted in an increase in product prices.

Domestic shipments of cement were strong. Cement exports, however, decreased.

Shipments of methylene diphenyl diisocyanate (MDI) fell. But MDI export prices rose to reflect the improvement in overseas market conditions.