February 7, 2022
Tosoh Corporation is pleased to announce its cumulative consolidated results for the first three quarters of its 2022
The company’s consolidated net sales for the nine-month period under review were JPY669.5 billion (US$6.0 billion), up JPY152.8 billion, or 29.6%, from the same period of fiscal 2021. The rise in net sales was attributable to increases in sales prices that reflected increased prices for raw materials and fuels, such as naphtha, including in overseas product markets, and to heightened sales volumes driven by a recovery in demand.
Operating income also increased, JPY56.3 billion, or 111.2%, to JPY106.9 billion (US$962.2 million), from the same period one year earlier. This increase was due to improved trade conditions, whereby high raw material and fuel prices were more than offset by higher sales prices.
Ordinary income rose JPY63.7 billion, or 124.2%, compared with the same period in fiscal 2021, to JPY114.9 billion (US$1.0 billion). Profit attributable to owners of the parent company, in turn, rose JPY42.9 billion, or 124.5%, to JPY77.4 billion (US$696.7 million).
During the first nine months of Tosoh’s 2022 fiscal year, the Japanese economy continued to show signs of recovery. This was due to progress in COVID-19-related vaccinations in Japan and to improved overseas demand amid the lingering effects of COVID-19 infections. The outlook for the domestic economy for rest of the year, however, remains uncertain, as infections are again soaring, causing concern for renewed restrictions on social and economic activities.
Outside Japan, meanwhile, restrictions on economic activities have eased and demand is recovering, particularly in developed countries. There are concerns, though, that global economic recovery will be impeded by intermittent waves of COVID-19 infections, soaring resource prices, rising and prolonged inflationary pressures, and disruptions in the global supply chain.
Results by Business Segment
The Chlor-alkali Group’s net sales amounted to JPY257.2 billion (US$2.3 billion), an increase of JPY66.5 billion, or 34.9%, compared with the same nine-month period in fiscal 2021. Its operating income also increased, JPY30.0 billion, or 146.2%, to JPY50.5 billion (US$454.5 million), the result of improved trade conditions for its vinyl chloride products and urethane raw materials.
The group’s shipments of caustic soda, primarily for export, fell, but caustic soda prices rose in keeping with overseas market prices. Its shipments of vinyl chloride monomer and polyvinyl chloride resin, on the other hand, decreased because of drops in their production volumes. But the prices of its vinyl chloride products increased to mirror their heightened prices in overseas markets and the increased cost of their naphtha raw material.
Domestic shipments of cement by the group fell amid sluggish demand.
Domestic and overseas shipments by the group of its methylene diphenyl diisocyanate (MDI), however, increased. This was due to the steady operation of Tosoh’s MDI production subsidiary in China following its shutdown in the previous fiscal year amid the spread of COVID-19 and to the global recovery in demand for MDI. MDI prices rose, too, in line with overseas market prices.
Shipments of the group’s hexamethylene diisocyanate hardening agents increased domestically and abroad because of a recovery in demand, and prices rose in tandem with overseas market prices.
Net sales by the Specialty Group increased JPY34.8billion, or 26.2%, to JPY167.7 billion (US$1.5 billion), compared with the first three quarters of the previous fiscal year. Specialty Group operating income increased to JPY34.1 billion (US$306.9 million), a rise of JPY16.1 billion, or 89.6%, that was mostly attributable to a recovery in demand that raised sales volume.
The group’s shipments of ethyleneamines increased domestically and overseas owing to a recovery in ethyleneamines demand. Ethyleneamines prices likewise increased, in line with rising overseas market prices.
Among its separation-related products, the group was able to increase its shipments of liquid chromatography packing materials to countries in Europe and to the United States and China. It was also able to elevate shipments of the in vitro diagnostic products in its diagnostics lineup, domestically and to the United States and markets in Europe and Asia, as demand for such products recovered.
Demand likewise recovered for high-silica zeolite, primarily for use in automotive exhaust gas catalysts. That facilitated an increase in the group’s shipments of high-silica zeolite, in Japan and abroad. Its shipments of zirconia for use in dental materials also increased in line with a recovery in demand. Growing demand for semiconductors, meanwhile, boosted the group’s shipments of silica glass. The group increased, too, its shipments of electrolytic manganese dioxide, mainly for dry cells.