Tosoh Announces First Half Consolidated Results FY2005
(April 1, 2005 – September 30, 2005)
Tokyo, Japan – Tosoh Corporation announced consolidated results for the first half of the fiscal year, ending March 31, 2006. The Company reported net sales growth of 11.6% over the first half of the previous fiscal year to JPY 304 billion (USD 2.7 billion*) . Operating Income decreased 2% to JPY 21.6 billion (USD 191 million), while Ordinary Income increased 5.6% to JPY 23.2 billion (USD 205 million). Net Income grew 1.7% to JPY 12.6 billion (USD 112 million). The outlook for the fiscal year ending March 31, 2006 projects net sales of JPY 635 billion (USD 5.6 billion), and Net Income at JPY 27 billion (USD 239 million).
Growing consumer demand and an improving domestic economy combined with increasing capital investment to support corporate profits. Although petrochemical shipments were brisk, vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) resin markets softened due to a temporary decrease in orders from China. The rapid increase in the price of naphtha has left the cost of raw materials high. Under these conditions, Tosoh strove to increase volumes, maintain and adjust pricing structures to reflect rising costs, and improve efficiency.
In Petrochemicals, Tosoh is expanding its product portfolio while making better use of its resources. As part of a strategic objective to acquire substitutes for increasingly expensive naphtha, the Company constructed a t-BA plant that makes use of the previously sold-off byproduct spent C4 fraction and recently complimented that project with completion of a 100,000 MT hydrogenation facility for the C5 fraction.
Among measures to strengthen its vinyl isocyanate chain, Tosoh continued to invest in building stronger infrastructure to support a chlor-alkali supply-chain for Asia. Most recent developments include a 400,000MT capacity expansion for vinyl chloride monomer (VCM) and on-going construction of a 220,000 MT PVC resins plant in Guangzhou, China. Additional infrastructure strengthening operations were completed to supply affiliate Nippon Polyurethane Industry Co., Ltd. (NPU) with the raw materials aniline and carbon monoxide for the production of urethane.
In Specialties, Tosoh established a trading company in Shanghai and Tosoh Speciality Materials Corporation completed a sputtering target plant in Taiwan for the production of targets for liquid crystal displays. In Japan, Tosoh has recently completed an ethylene amines expansion from 41,000 to 51,000 MT.
Through innovations in technology and business, the Tosoh Group continues to strengthen core operations to improve competitiveness and focus on developing product lines that are leaders in global or Asian markets.
Summary - FY05 Consolidated First Half Results News Release 11.21.05.pdf
* For reference purposes, U.S. dollar amounts are translated from yen at the rate of JPY 113.19 = US$1, the exchange rate in effect on September 30, 2005.