Home / Knowledge / News / Textiles / Sales of Toyobo acrylic fiber (EXLAN) down
Sales of Toyobo acrylic fiber (EXLAN) down
26
Aug '08
The business environment for the Toyobo Group during the first quarter of fiscal 2009 (the three-month period from April 1 to June 30, 2008) was marked by increasing uncertainty as to the economic outlook.

Along with rising oil prices and a sense of slowdown in the U.S. economy precipitated by the subprime loan crisis, the Japanese economy saw sluggish growth in the exports that had been the driving force for the economy, along with a retreat of capital investment following deterioration in corporate earnings, and stagnant consumer spending.

Under such circumstances, the Toyobo Group took steps to strengthen and expand its specialty business segments Films and Functional Polymers, Industrial Materials, and Life Science while in the Textiles segment continued to narrow the overall focus of the Group to functional textiles.

However, increased costs stemming from rising prices for raw material and fuel, more intense competition, and the application of new accounting standards for valuation of inventories led to harsh consequences in terms of earnings.

As a result, net sales for the subject first quarter decreased ¥4.6 billion (4.6%) from the previous fiscal year to ¥97.1 billion.

Earnings declined, however, with operating income down ¥1.8 billion (29.7%) to ¥4.2 billion, and ordinary income down ¥2.4 billion (44.9%) to ¥2.9 billion, with Toyobo posting a net loss for the first quarter of ¥4.7 billion.

Sales in this segment rose due to aggressive marketing to expand sales of automotive-related materials, high-performance fibers, and functional filters, with earnings up as well.

Airbag fabric and tire cord sales rose along with greater demand in Japan and overseas. Sales of the high-performance fiber “DYNEEMA” remained high for such applications as safety gloves, fishing line, and ropes for large ships, and were boosted by increased production following the introduction of new production equipment.

In the filters field, sales of solvent adsorption equipment and various types of air purification filters continued to be strong. Revenue from spunbond was down due to a slowdown in construction-related demand.

As a result, sales in this segment rose ¥1.9 billion (10.1%) from the same period of the previous fiscal year to ¥20.1 billion, with operating income up ¥0.1 billion (5.1%) to ¥1.3 billion.

Both revenue and earnings were down in this segment as we continued to scale back unprofitable products and narrow the commodity textile field, tightening our focus to functional textiles that utilize Toyobo's proprietary technologies.

In the textiles business, sales rose with continued strong exports to the Middle East region, and sales of textiles for underwear and sportswear applications remained steady. Sales of the acrylic fiber “EXLAN” were down considerably due to a falloff in exports to China.

As a result, sales in this segment declined ¥5.4 billion (15.7%) from the same period of the previous fiscal year to ¥28.9 billion, with operating income down ¥0.3 billion (38.6%) to ¥0.5 billion.

Toyobo Group


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Urmil Arya

Sushila International, a well established textile organisation established ...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search