Tosoh Reports on First-Quarter Consolidated Results for Fiscal 2018

Tokyo, Japan—Tosoh Corporation is pleased to announce its consolidated results for the first half of fiscal 2018, from April 1, 2017, to September 30, 2017.

The company’s consolidated net sales amounted to ¥391.7 billion (US$3.5 billion), up ¥54.6 billion, or 16.2%, from the same period a year earlier.

The increase was attributable to increases in prices for fuel and raw materials, such as naphtha, and the resulting rise in petrochemical product prices and to rising markets overseas.

Operating income also increased, ¥13.2 billion, or 31.9%, over the same period the preceding year, to ¥54.5 billion (US$490.8 million). This gain resulted from an increase in sales prices that exceeded the increases in fuel prices and, in turn, improved trade conditions.

Ordinary income climbed ¥21.7 billion, or 59.1%, compared with the first half of fiscal 2017, to ¥58.3 billion (US$525.0 million). This rise was due to foreign exchange gains instead of the foreign exchange losses in the same period a year earlier. Profit attributable to owners of the parent company totaled ¥40.3 billion (US$362.9 million), an increase of ¥15.4 billion, or 62.0%.

During the first half of fiscal 2018, Japan’s economy showed signs of a gradual recovery, evidenced by continued improvement in corporate earnings, employment, and wages, and increased consumer spending. Concern, however, for the impact on the domestic economy of rising uncertainty globally over policy trends in Western countries, the situation in North Korea, and over other issues makes it difficult to forecast outcomes for Japan’s economy going forward.

Results by Business Segment

Petrochemical Group

Petrochemical Group net sales rose ¥15.9 billion, or 21.8%, to ¥88.9 billion (US$800.6 million), compared with the first half of fiscal 2017. Operating income also increased, ¥3.0 billion, or 40.9%, to ¥10.3 billion (US$92.8 million).

Petrochemical Group shipments of olefin products, such as ethylene and propylene, increased in line with an increase in production volume attributable to the absence of scheduled maintenance for the year under review. In addition, the group raised prices for these products to reflect increased naphtha costs.

Shipments of polyethylene resin in Japan increased, and prices rose, again to reflect the increase in naphtha costs. Chloroprene rubber saw increased shipments and a rise in export prices driven by strong overseas demand.

Chlor-alkali Group

The Chlor-alkali Group’s net sales increased ¥29.8 billion, or 23.7%, to ¥156.0 billion (US$1.4 billion). The group’s operating income likewise rose, ¥11.5 billion, or 85.7%, to ¥24.9 billion (US$224.2 million), compared with the corresponding period the preceding year, chiefly on account of improved trade conditions.

Caustic soda prices rose because of a revision in domestic prices and improved conditions overseas. Vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) resin prices rose for the same reasons, and their shipments gained momentum.

Domestic shipments of cement increased. Conversely, MDI shipments decreased. MDI export prices rose, however, reflecting improving conditions overseas.

Specialty Group

Net sales by the Specialty Group increased ¥9.6 billion, or 11.6%, to ¥91.9 billion (US$827.6 million). But the group’s operating income edged downward 2.5%, or ¥456.0 million, to ¥17.9 billion (US$161.2 million), compared with the first half of the previous fiscal year.

Ethyleneamine shipments to China and Asia declined. Shipments, however, of separation-related packing materials for liquid chromatography increased, primarily to Europe. Diagnostic-related product shipments decreased, especially of in vitro diagnostic reagents.

Shipments to North America of high-silica zeolites (HSZ) for application in automobile catalytic converters declined. But shipments of zirconia for dental and decorative applications increased, as did shipments of quartz glass for semiconductor devices.

Engineering Group

Engineering Group net sales fell ¥1.7 billion, or 4.8%, compared with the first half of fiscal 2017, to ¥34.9 billion (US$314.3 million). Operating income also dropped, ¥880.0 million, or 80.8%, for a loss of ¥208.0 million (US$1.9 million).

The Engineering Group’s water treatment business saw a decline in sales owed to such factors as delayed construction progress in the general industry domestically and in the electronic manufacturing industry in Taiwan.

Sales by the Engineering Group’s construction subsidiaries increased.


Other net sales rose ¥978.0 million, or 5.1%, to ¥20.0 billion (US$180.1 million), compared with the same period a year earlier, and operating income increased ¥56.0 million, or 4.7%, to ¥1.3 billion (US$11.7 million). Increases were owed to increased sales for trading companies and other operations during the period under review.

Note: For reference purposes only, US dollar amounts have been translated, unless otherwise indicated, from yen at the rate of ¥111.04 = US$1, the average exchange rate during the period under review.

Financial Condition

Total assets increased ¥9.3 billion compared with the end of fiscal 2017, to ¥791.9 billion (US$7.1 billion), resulting from increases in investment securities and notes and accounts receivable.

Liabilities, meanwhile, decreased ¥24.6 billion, to ¥309.7 billion (US$2.8 billion), compared with fiscal 2017 year-end, due to declines in accounts payable and interest-bearing liabilities.

Net assets increased ¥33.9 billion compared with the fiscal 2017 year-end, to ¥482.2 billion (US$4.3 billion). The increase was a result of accounting for profit attributable to owners of the parent company.

Outlook for fiscal year ending March 31, 2018

The Japanese economy is shifting from growth driven by external demand to growth sparked by consumer spending, and is anticipated to continue its gradual recovery through the end of fiscal year 2018.

Uncertainties internationally, however, are likewise expected to continue, resulting in a business climate where the Tosoh Group must remain cautious of the yen’s appreciation and of fluctuations in raw material and fuel prices.

The Tosoh Group will nevertheless make every effort to maintain and boost its profitability. It will do so by, among other measures, growing its sales volume, decreasing its costs, and ensuring consistent supply to its customers.

Buoyed by recent trends, including its better-than-forecast fiscal 2018 first-half results, Tosoh has revised the full-year forecast that it announced on May 10, 2017. Tosoh’s revision to its 2018 fiscal year forecast, shown in the table to follow, is based on a standard domestic naphtha price of ¥43,000 per kiloliter and an exchange rate of ¥110 to the US dollar.

Revised consolidated financial results for the fiscal 2018 full year

Net Sales Operating Income Ordinary Income Profit Attributable to Owners of the Parent Company Earnings Per Share (yen)
Previous forecast (A) ¥770 billion
¥100 billion
¥100 billion
¥68 billion
Revised forecast (B) ¥800 ​billion
¥118 billion
¥120 billion
¥82 billion
Difference (B – A) ¥30 billion
¥18 billion
¥20 billion
¥14 billion

% difference 3.9 18.0 20.0 20.6
Reference: FY 2017 performance (Year ended March 2017)
¥743 billion
¥111 billion
¥113 billion
¥76 billion

*Effective October 1, 2017, Tosoh Corporation has consolidated its common shares at the ratio of one share for two shares. The forecast for earnings per share (EPS) and current EPS have been calculated based on a reverse stock split executed at the beginning of fiscal 2017, the preceding fiscal year.

For further details, please see Tosoh’s news release announcing its revised fiscal 2018 full-year consolidated results forecast, released on the same date as this news release.



Tosoh is the parent of the Tosoh Group, which comprises over 100 companies worldwide and a multiethnic workforce of over 12,000 people and generated net sales of ¥743.0  billion (US$6.9 billion at the average rate of ¥108.35 to the US dollar) in fiscal 2017, ended March 31, 2017.


Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh’s petrochemical operations supply ethylene, polyethylene, and functional polymers, while its advanced materials business serves the global semiconductor, display, and solar industries. Tosoh has also pioneered sophisticated bioscience systems that are used for the monitoring of life-threatening diseases. In addition, Tosoh demonstrates its commitment to a sustainable future in part by manufacturing a variety of eco-products.

Stock Exchange Ticker Symbol: 4042


This document may contain forward-looking statements, including, without limitation, statements concerning product development, objectives, goals, and commercial introductions, which involve certain risks and uncertainties. Forward-looking statements are identified through the use of the word anticipates and other words of similar meaning. Actual results may differ significantly from the results expressed in forward-looking statements.

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Jeff Markley
International Corporate Development
Tosoh Corporation
Tel: +81 3 5427 5118
Fax: +81 3 5427 5198