08/01/2018 | Press release | Distributed by Public on 07/31/2018 22:13
Tosoh Reports on First-Quarter Consolidated Results for Fiscal 2019
Tokyo, Japan- Tosoh Corporation is pleased to announce its consolidated results for the first quarter of fiscal 2019, from April 1, 2018, to June 30, 2018. The company’s consolidated net sales totaled ¥204.4 billion (US$1.9 billion), up ¥14.0 billion, or 7.3%, over the first quarter of fiscal 2018. The increase was attributable to increases in prices for fuel and raw materials, such as naphtha; the resulting rise in petrochemical product prices; and a strengthening of markets overseas.
Operating income also increased, ¥3.3 billion, or 15.5% over the same period the preceding year, to ¥24.7 billion (US$226.5 million). The gain resulted from an increase in sales prices that exceeded the increases in fuel prices and, in turn, improved trade conditions. Ordinary income climbed ¥4.5 billion, or 18.9%, compared with the first quarter of fiscal 2018, to ¥28.1 billion (US$257.7 million). This rise was due to foreign exchange gains resulting from the continued depreciation of the yen. Net profit attributable to owners of the parent company totaled ¥19.2 billion (US$176.0 million), an increase of ¥2.7 billion, or 16.3%, compared with the same period a year earlier.
During the first quarter of fiscal 2019, Japan’s economy showed signs of a gradual recovery. Individual consumption rose amid higher corporate earnings and an improved employment and income environment. The future, however, remains difficult to predict. The global economy, led by the United States, was firm overall, but with continued trade friction between the US and China, political uncertainty in Europe, and heightened geopolitical risk in the Middle East, there is still the possibility of an economic slowdown.
Results by Business Segment
Petrochemical Group net sales fell ¥3.0 billion, or 6.4%, to ¥43.2 billion (US$395.9 million), compared with the first quarter of fiscal 2018. Operating income also decreased, ¥1.3 billion, or 30.9%, to ¥3.0 billion (US$27.2 million).
Shipments of olefin products, such as ethylene and propylene, decreased in line with a decrease in production volume attributable to fiscal 2019 being a scheduled maintenance year. The group raised prices for these products to reflect increased naphtha costs.
Shipments of polyethylene resin in Japan decreased, but prices rose to reflect the increase in naphtha costs. Chloroprene rubber saw decreased shipments due to a decrease in production volume, but export prices rose, driven by strong overseas demand.
The Chlor-alkali Group’s net sales increased ¥8.6 billion, or 11.3%, to ¥84.0 billion (US$770.0 million). The group’s operating income likewise rose, ¥3.3 billion, or 39.8%, to ¥11.5 billion (US$105.8 million), compared with the corresponding period the preceding year, primarily due to improved trade conditions.
Domestic shipments and exports of caustic soda and vinyl chloride monomer were strong, and product prices rose because of a revision in domestic prices and improved conditions overseas. Polyvinyl chloride resin product prices also rose because of changes in domestic prices.
Domestic shipments of cement trended strongly upward, while exports stagnated. Methylene diphenyl diisocyanate shipments decreased, but export prices rose, reflecting improved conditions overseas.