Tosoh Reports Its Consolidated Results for the First Nine Months of Fiscal 2019
Tokyo, Japan- Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2019 fiscal year, from April 1, 2018, to December 31, 2018.
The company’s consolidated net sales for the nine-month period under review were ￥645.8 billion (US$5.8 billion), up ￥43.9 billion, or 7.3%, from the same period of fiscal 2018. The increase was attributable to higher sales prices driven by an increase in the price of naphtha and to orders received by the Engineering Group for semiconductor-related plants.
Operating income, though, was ￥79.6 billion (US$716 million), down ￥14.7 billion, or 15.6%, from the same period one year earlier. This was due to the worsening of trade conditions caused by increased raw material and fuel prices. Ordinary income also decreased, ￥16.5 billion, or 16.6%, compared with the same period in fiscal 2018, to ￥83.2 billion (US$748 million), due to factors including lower foreign exchange gains. And profit attributable to owners of the parent company was down ￥12.6 billion, or 18.3%, to ￥56.4 billion (US$507 million).
During the first nine months of fiscal 2019, the Japanese economy showed signs of a gradual recovery, with improvements in corporate earnings and in employment and income. Concerns, however, over a global economic slowdown due to trade friction between the US and China contributed to heightened uncertainty.
Results by business segment
Petrochemical Group net sales rose ￥9.2 billion, or 6.8%, to ￥144.6 billion (US$1.3 billion), compared with the same period the previous year. The group’s operating income, however, decreased ￥5.3 billion, or 29.9%, to ￥12.3 billion (US$111 million) due to the worsening of trade conditions.
Shipments of olefin products, such as ethylene and propylene, decreased in line with decreases in production volume amid scheduled annual plant maintenance. But product prices rose, reflecting the increase in naphtha and other costs.
Domestic shipments of polyethylene resin fell, but product prices increased to reflect higher naphtha costs. And although chloroprene rubber shipments decreased in line with a decrease in production volume, export prices increased on strong demand overseas.
The Chlor-alkali Group’s net sales amounted to ￥254.0 billion (US$2.3 billion), an increase of ￥11.0 billion, or 4.6%, compared with the same period in fiscal 2018. Operating income, however, decreased ￥13.6 billion, or 29.5%, to ￥32.6 billion (US$293 million) due to the worsening of trade conditions
Domestic and overseas shipments of caustic soda were strong, and despite a worsening of market conditions overseas, prices increased because of price revisions in Japan. Shipments and product prices of vinyl chloride monomer increased on the strength of improved market conditions overseas. Shipments of polyvinyl chloride resin decreased amid a decrease in production volume, but product prices rose because of changes in domestic prices and improved market conditions overseas.
Domestic cement shipments were strong. But exports of cement decreased.
Shipments of methylene diphenyl diisocyanate (MDI) decreased, and MDI export prices fell on account of worsening market conditions overseas.