Tosoh sales down 9.6% in nine months of FY'13

20 Feb '13

5 min read

The group’s domestic shipments of caustic soda decreased because of falling demand and other factors. But over all shipments were approximately the same as in the same period the previous fiscal year because of growth in exports. Sales were also about the same because the group increased its domestic caustic soda prices and because caustic soda prices rose in overseas markets. Domestic and overseas shipments of vinyl chloride monomer (VCM) and polyvinyl chloride (PVC) resin fell because of the accident at the Nanyo Complex’s No. 2 Vinyl Chloride Monomer Plant. In addition, VCM and PVC prices softened overseas.

The group’s domestic shipments of cement increased, driven by robust public-and private-sector demand. Cement exports, however, declined. Overseas, prices for the group’s urethane raw materials firmed.

Specialty Group

Net sales for the Specialty Group in fiscal 2013’s first nine months amounted to ¥93.0 billion (US$1.2 billion), a decrease of ¥10.8 billion, or 10.4%, from the group’s net sales for the same period in the preceding fiscal year. The group recorded a ¥6.6 billion, or 53.2%, drop in operating income, to ¥5.7 billion (US$72 million).

During the period under review, ethylene amine prices softened globally. As well, the group’s shipments of its bromine and bromine flame retardant products declined.

Among separation-related products, the group’s shipments of liquid chromatography packing materials expanded. Diagnostic-related products saw shipments of automated immunoassay (AIA) systems increase.

Electrolytic manganese dioxide shipments declined during the period under review in line with inventory adjustments of dry cell batteries. Shipments increased, however, of high-silica zeolite for use in catalytic converters for automobiles. In addition, shipments of zirconia rose firmly. Quartz glass shipments decreased because of falling demand in the semiconductor and liquid crystal display markets.

Engineering Group

Net sales for the Engineering Group in the first three quarters were ¥47.5 billion (US$594 million), an increase of ¥1.1 billion, or 2.4%, over the group’s net sales for the first nine months of fiscal 2012. The group’s operating income decreased ¥0.3 billion, or 13.4%, from the same period in the previous year, to ¥2.0 billion (US$25 million).

The Engineering Group experienced declines in purchases of water treatment facilities, services, and related chemicals because of clients’ postponement of capital investment, maintenance, renovation, and other business. Overall group sales, however, increased because of the completion of previous orders and because the group’s construction-related companies posted sales growth.

Other

Other net sales for the first three quarters of fiscal 2013 declined ¥0.9 billion, or 2.9%, from net sales for the same period the year before, to ¥29.4 billion (US$368 million). Other operating income was ¥1.5 billion (US$19 million), a decrease of ¥0.4 million, or 22.1%.Sales by trading companies and logistics subsidiaries declined.

Tosoh Corporation

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