Toray's Fibers and Textiles segment sales up in H1
Toray Industries Inc announced its consolidated business results for the three months ended June 30, 2011, the first quarter of the year ending March 31, 2012. The following summary of the business results that Toray submitted to the Tokyo Stock Exchange is unaudited and for reference only.
In the period under review, while economies of developed countries on the whole continued to recover at a steady pace, the slow improvement in employment pulled down the pace of the U.S. economic growth, and concerns over the financial system came to the fore reflecting financial instability in various nations in the euro area. China and other emerging countries continued expanding on the back of domestic demand, though there were signs of the economy heating up in some countries fueling inflation concerns. Despite the difficult start of the term as production and other sectors were affected by the Great East Japan Earthquake, the Japanese economy started looking up as the restoration of disrupted supply chains led to recovery in production activity, which in turn boosted corporate and household mindsets.
Under such circumstances, Toray Group in April 2011 launched the new medium-term management program “Project AP-G 2013.” Under the project, the Group will strive to strengthen its revenue base by pursuing business expansion in growth business fields and growth regions and by bolstering its total cost competitiveness.
As a result, consolidated net sales for the three months ended June 30, 2011 rose 7.0% compared with the same period of the previous fiscal year to ¥374.8 billion (US$4,645 million). Operating income came to ¥27.3 billion (US$338 million), up 68.2%, and ordinary income doubled to ¥29.1 billion (US$360 million). Net income surged 105.5% to ¥17.8 billion (US$220 million).
In Japan, sales increased strongly in overall apparel applications including inner wear using functional materials and the sewn products business mainly targeting major specialty store retailers of private label apparel. However, shipment of industrial-use materials led by automotive applications was stagnant due to the impact of the Great East Japan Earthquake. Overseas, the nylon filament and polyester filament and staple fiber business in ASEAN countries, the fiber and textile business in China and ASEAN countries and the yarn and textile business for air bag applications in Thailand and Czech Republic expanded sales on the back of strong demand. The Group also made efforts to shift focus to high value added products and transfer cost increases to selling prices to reflect steep rises in raw materials and fuel prices, resulting in steady performance in both apparel and industrial applications.
As a result, total sales of Fibers and Textiles rose 11.6% to ¥142.3 billion (US$1,763 million) from the previous year and operating income jumped 75.3% to ¥10.2 billion (US$126 million).
In Fibers and Textiles, Toray Group will start a high-performance polypropylene spunbond business in Indonesia for hygiene products such as disposable diapers. The move is in response to growing demand for the material primarily for baby diaper application that is rapidly expanding in the country and other ASEAN countries. The Group plans to establish P.T. Toray Polytech Jakarta as a subsidiary of Toray Advanced Materials Korea Inc., and start full-scale operations of the new facilities with annual production of 20,000 tons in June 2013.
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Toray Industries Inc