Tosoh Announces 1Q Consolidated Results FY2007
(April 1, 2007 – June 30, 2007)
Tokyo, Japan – Tosoh Corporation announced strong consolidated results for the first quarter of the fiscal year, ending March 31, 2008. Market growth abroad for core products, the implementation of price adjustments in Japan, and the continuing growth of Specialties all combined to boost Net Sales 10.8% over the first quarter of the previous fiscal year to JPY 191.7 billion (USD 1.6 billion) . Operating Income increased 193.8% to JPY 13.9 billion (USD 112.7 million), and Ordinary Income increased 191.7% to JPY 14.8 billion (USD 120.4 million). Net Income jumped 297.6% to JPY 7.3 billion (USD 59.0 million).
Year-on-year, total assets increased JPY 18.0 billion to JPY 806.5 billion (USD 6.5 billion). This was attributed to an increase in fixed assets resulting from investment in new MDI production facilities and the power plant expansion projects at Tosoh’s Nanyo Complex. As a result of capital investment activities, debt increased JPY 16.4 billion over the first quarter to JPY 345.8 billion (USD 2.8 billion). Gains posted in profits for the quarter resulted in equity increasing over the previous period by JPY 4.5 billion to JPY 232.3 billion (USD 1.9 billion).
Corporate profits continue to be supported by an improving domestic economy combined with increasing capital investment. In the chemical industry, the rapid increase in the price of naphtha pushed the cost of raw materials and fuels higher. As a counter measure, Tosoh continued to implement a feedstock diversification strategy to offset increases in naphtha prices. At the same time, domestic price increases were implemented for propylene and aromatic compounds (benzene, toluene, and xylene) while market prices abroad increased for cumene and styrene monomer. Polyethylene shipment volumes increased and price adjustments were implemented in Japan. Markets for Tosoh core products abroad such as polyvinyl chloride and urethane raw materials tightened and as a result prices gained ground. Shipments for Specialty products overall remained brisk with a substantial contribution to profits.
The outlook for the fiscal year ending March 31, 2008 projects net sales of JPY 840 billion (USD 6.8 billion), and Net Income at JPY 28 billion (USD 227 million).
FY07 - Summary of 1Q results and comparison with FY06
Tosoh Corporation
Headquartered in Tokyo, Japan, Tosoh Corporation is a diversified global chemical and specialty materials company. Founded in 1935, the Company has expanded its reach into high value-added businesses such as fine chemicals, bioscience, thin film materials, and quartzware. Tosoh is a multi-billion dollar corporation that employs more than 10,000 people worldwide and is listed on the Tokyo Stock Exchange.
Stock Exchange Ticker Symbol: 4042
For more information, please contact:
Michael Hoover
International Corporate Development
Tosoh Corporation
m_hoover@tosoh.co.jp
Tel: +81-3-5427-5118
Fax: +81-3-5427-5198
www.tosoh.com
Disclaimer
This document contains forward-looking statements, including without limitation, statements concerning product development, objectives, goals, and commercial introduction, which involve certain risks and uncertainties. The forward-looking statements are also identified through use of the word "anticipates," and other words of similar meaning. Actual results may differ significantly from the expectations contained in the forward-looking statements.