Asahi Kasei Q2 FY'14 sales grow 16.7%

Consolidated group results

Although the US economy was on a path of recovery, and there were signs that slowing growth in China and other emerging economies and stagnation in the European economy had bottomed out, the global economic situation during the April–September period of 2013 remained soft with many downside risks.

The Japanese economy saw a lower yen exchange rate and higher stock prices with high expectations for the government’s economic policies, and consumer spending began recovering with an improved mood, but recovery in the real economy was only partial and the economic outlook remained unpredictable.

Consolidated net sales of Asahi Kasei Corp. and its consolidated subsidiaries and equity-method affiliates (the Asahi Kasei Group) increased by ¥131.5 billion (16.7%) from a year ago to ¥919.0 billion, with increased deliveries in the Homes segment, and increased sales volume in the Chemicals segment and of pharmaceutical products in the Health Care segment, as well as improved overall performance of exports due to the progressive weakening of the yen. Operating income increased by ¥36.0 billion (94.0%) to ¥74.3 billion, ordinary income increased by ¥37.0 billion (103.2%) to ¥72.9 billion, and net income increased by ¥26.0 billion (126.3%) to ¥46.6 billion.

 Results by operating segment

The Asahi Kasei Group’s operations are described by major business classification: seven reportable segments of Chemicals, Fibers, Homes, Construction Materials, Health Care, and Critical Care, together with an “Others” category.

Beginning with the April–June quarter of 2013, the sequence of reportable segments has been changed to correspond with the classification of our four business sectors: Chemicals & Fibers, Homes & Construction Materials, Electronics, and Health Care. In the Critical Care segment, results for the year-ago period were included beginning on April 27, 2012, while results were subject to consolidation throughout the entire period beginning with the April–September period of 2013.

CHEMICALS

Sales increased by ¥64.7 billion (19.5%) from a year ago to ¥397.0 billion, and operating income increased by ¥8.6 billion (59.1%) to ¥23.2 billion.

Chemicals and derivative products operations were impacted by low market prices for acrylonitrile and high feedstock prices, but the depreciation of the yen and improved market prices for styrene monomer contributed to performance.

Polyethylene was impacted by high feedstock prices, but the depreciation of the yen contributed to performance in polymer products operations, and shipments of engineering plastics and of synthetic rubber for fuel-efficient tires were firm. In specialty products operations, the effect of the depreciation of the yen was most notable for ion-exchange membranes, and shipments of functional chemicals for pharmaceutical manufacture and of coating materials were firm.

FIBERS

Sales increased by ¥5.9 billion (11.0%) from a year ago to ¥59.8 billion, and operating income increased by ¥2.7 billion (152.7%) to ¥4.4 billion.

Although feedstock costs rose for each product, operating income in fibers increased with the effect of the weaker yen, increased shipments of nonwovens such as Lamous artificial suede for automotive interiors and of Roica elastic polyurethane filament, and firm sales of Bemberg cupro fiber.

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Asahi Kasei