Home / Knowledge / News / Textiles / Tosoh Corporation Q1 profits decrease
Tosoh Corporation Q1 profits decrease
26
Sep '08
Tosoh Corporation is pleased to announce its consolidated financial results for the first quarter of the fiscal year ending March 31, 2009.

During the first quarter, corporate profits and exports decreased while manufacturing slowed because of the further weakening of Japan's economy.

Japan's economic woes were attributed to the sharp rise in the price of crude oil and the significant slowing of the U.S economy.

For the Japanese chemical industry, the surging price of crude oil continued to cause havoc, pushing the cost of raw materials, such as naphtha, ever higher. This exerted extreme pressure on profitability despite robust overseas demand for petrochemical products.

Amid these harsh conditions, Tosoh Corporation reported growth in consolidated sales and a decrease in profits for the first quarter.

Market growth abroad and the Company's implementation of price adjustments in Japan for such of its core products as polyvinyl chloride and urethane raw materials combined to boost Tosoh's net sales 0.8% over the first quarter of the previous fiscal year, to ¥193.3 billion (US$1.8 billion).

The rising cost of raw materials, the increased burden of depreciation costs from substantial investments for growth, and scheduled plant stoppages and rising maintenance costs combined to push operating income down 74.7%, to ¥3.5 billion (US$33.0 million); ordinary income down 66.0%, to ¥5.0 billion (US$47.4 million); and net income down 58.5%, to ¥3.0 billion (US$28.3 million).

Compared with the same period a year earlier, total assets increased ¥9.1 billion, to ¥826.1 billion (US$7.8 billion). This was attributed to an increase in fixed assets resulting from capital investments.

As a result of increased borrowing, however, debt rose ¥22.7 billion over the first quarter of the year before, to ¥597.4 billion (US$ 5.6 billion).

And because of adjustments after exchange rate conversions and a decrease in minority shareholders, shareholders' equity declined ¥13.7 billion from the same period for the previous fiscal year, to ¥229.0 billion (US$ 2.1 billion).

Tosoh's business segments enacted countermeasures to return to profitability. In the Petrochemical Group, olefin products faced high prices across the board for raw materials, especially naphtha.

Under these conditions, Tosoh pushed forward by implementing domestic price increases for ethylene, propylene, and aromatic compounds and by diversifying its raw materials to further cost cutting. Markets abroad, meanwhile, grew for cumene.

Polyethylene shipments decreased in Japan and overseas. Price adjustments were implemented in Japan to reflect the high cost of naphtha.

Chloroprene rubber sales rose in overseas markets. And the Company expanded its domestic shipments of and increased its domestic price for polyvinyl chloride (PVC) paste.

The Basic Group increased its overall shipment volumes of caustic soda and vinyl chloride monomer (VCM) in Japan and abroad.


Must ReadView All

Textiles | On 21st Aug 2017

Telangana announces sops for textile, apparel sector

The Telangana government recently announced a string of incentives,...

Textiles | On 21st Aug 2017

India’s cotton production may grow by 3.76% in 2016-17

India’s cotton production is likely to rise by 3.76 per cent to 345...

Textiles | On 21st Aug 2017

Turkish apparel exports fall 6.11% in H1 2017

Apparel exports from Turkey declined by 6.11 per cent in the first...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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

August 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
67.7%
No
16.1%
Skip
16.1%

Total Votes: 31

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
45.2%
No
35.5%
Skip
19.4%

Total Votes: 31

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
83.9%
No
6.5%
Skip
9.7%

Total Votes: 31

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
61.3%
No
9.7%
Skip
29.0%

Total Votes: 31


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