TIDMTKK
RNS Number : 6049V
Toray Industries Inc
04 November 2010
November 4, 2010
Toray Announces Consolidated Results
for the Six Months Ended September 30, 2010
Tokyo, November 4, 2010 - Toray Industries, Inc. (the "Company") today announced
its consolidated business results for the six months ended September 30, 2010.
The following summary of the business results that Toray submitted to the Tokyo
Stock Exchange is unaudited and for reference only. (Code Number: 3402)
Consolidated Financial Highlights
(Millions of yen, millions of U.S. dollars, except per share data)
+------------------------+------------------------+-------------+--------+---------+--------------+
| | Six months ended September 30, | (Reference) |
| | | Fiscal 2009 |
+ +---------------------------------------------------------+ +
| | 2010 | | 2009 | Change | 2010 |
+ +------------------------+-------------+--------+---------+--------------+
| | Yen | % | U.S. | Yen |
| | | |Dollars | |
+------------------------+--------------------------------------+--------+---------+--------------+
| Net sales | JPY733,377 | JPY617,928 | 18.7 | $8,752 | JPY1,359,631 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Operating income | 42,520 | 5,493 | 674.1 | 507 | 40,107 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Ordinary income (loss) | 40,464 | (2,678) | - | 483 | 9,006 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Net income (loss) | 24,919 | (6,320) | - | 297 | (14,158) |
+------------------------+------------------------+-------------+--------+---------+--------------+
| |
+-------------------------------------------------------------------------------------------------+
| Depreciation | JPY34,354 | JPY36,750 | (6.5) | $410 | JPY74,101 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Capital investment | 20,196 | 24,913 | (18.9) | 241 | 54,170 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Total assets | 1,552,861 | 1,541,103 | 0.8 | 18,531 | 1,556,796 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Property, plant and | 543,091 | 595,312 | (8.8) | 6,481 | 580,344 |
| equipment, net | | | | | |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Net assets | 615,249 | 525,383 | 17.1 | 7,342 | 518,216 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| |
+-------------------------------------------------------------------------------------------------+
| Per Share of common stock (yen) |
+-------------------------------------------------------------------------------------------------+
| Net Income (loss) - | JPY16.05 | JPY(4.52) | - | - | JPY(10.12) |
| Basic | | | | | |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Net income - Diluted | 15.16 | - | - | | - |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Cash dividends | 2.50 | 2.50 | - | - | 5.0 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Net assets | 348.99 | 342.17 | 2.0 | - | 336.65 |
+------------------------+------------------------+-------------+--------+---------+--------------+
| |
+-------------------------------------------------------------------------------------------------+
| Ratios (%) |
+-------------------------------------------------------------------------------------------------+
| Operating income to | 5.8% | 0.9% | - | - | 2.9% |
| net sales | | | | | |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Net income (loss) to | 3.4% | (1.0)% | - | - | (1.0)% |
| net sales | | | | | |
+------------------------+------------------------+-------------+--------+---------+--------------+
| Equity ratio | 36.6% | 31.1% | - | - | 30.3% |
+------------------------+------------------------+-------------+--------+---------+--------------+
Notes:
1. For calculation of "net assets per share" and "equity ratio," minority
interests are deducted from net assets.
2. U.S. dollar amounts have been converted from yen at the exchange rate of
JPY83.8 = U.S.$1, the approximate rate of exchange prevailing on September 30,
2010.
3. Amounts are rounded to the nearest million.
Segment Information
(Millions of yen, millions of U.S. dollars)
+----------------------------+------------+----------+-------------+--------------+
| Net Sales | Six months ended September 30, |
+ +----------------------------------------------------+
| | 2010 | 2009 | 2010 |
+ +----------------------------+-----------------------+-------------+
| | Yen | U.S. |
| | | dollars |
+----------------------------+----------------------------------------------------+-------------+
| Fibers and Textiles | JPY273,065 | JPY245,099 | $3,259 |
+----------------------------+-----------------------+-------------+--------------+
| Plastics and Chemicals | 186,539 | 153,724 | 2,226 |
+----------------------------+-----------------------+-------------+--------------+
| IT-related Products | 136,162 | 107,301 | 1,625 |
+----------------------------+-----------------------+-------------+--------------+
| Carbon Fiber Composite | 31,871 | 20,978 | 380 |
| Materials | | | |
+----------------------------+-----------------------+-------------+--------------+
| Environment and | 73,461 | 61,787 | 877 |
| Engineering | | | |
+----------------------------+-----------------------+-------------+--------------+
| Life Science | 25,517 | 22,340 | 304 |
+----------------------------+-----------------------+-------------+--------------+
| Others | 6,762 | 6,699 | 81 |
+----------------------------+-----------------------+-------------+--------------+
| Consolidated Total | 733,377 | 617,928 | 8,752 |
+----------------------------+-----------------------+-------------+--------------+
| | | | | |
+----------------------------+------------+----------+-------------+--------------+
+--------------------------+------------+-----------+-----------+
| Segment Income (Loss) | Six months ended September 30, |
+ +------------------------------------+
| | 2010 | 2009 | 2010 |
+ +--------------------------+------------+-----------+
| | Yen | U.S. |
| | | dollars |
+--------------------------+---------------------------------------+-----------+
| Fibers and Textiles | JPY13,550 | JPY2,751 | $162 |
+--------------------------+------------+-----------+-----------+
| Plastics and Chemicals | 12,080 | 3,567 | 144 |
+--------------------------+------------+-----------+-----------+
| IT-related Products | 21,286 | 7,419 | 254 |
+--------------------------+------------+-----------+-----------+
| Carbon Fiber Composite | 1,240 | (1,034) | 15 |
| Materials | | | |
+--------------------------+------------+-----------+-----------+
| Environment and | (1,541) | (338) | (18) |
| Engineering | | | |
+--------------------------+------------+-----------+-----------+
| Life Science | 3,334 | 555 | 40 |
+--------------------------+------------+-----------+-----------+
| Others | 409 | 149 | 5 |
+--------------------------+------------+-----------+-----------+
| Total | 50,358 | 13,069 | 601 |
+--------------------------+------------+-----------+-----------+
| Adjustment | (7,838) | (7,576) | (94) |
+--------------------------+------------+-----------+-----------+
| Consolidated Total | 42,520 | 5,493 | 507 |
| (Operating income) | | | |
+--------------------------+------------+-----------+-----------+
Notes:
1. From the first quarter ended June 30, 2010, "Revised Accounting Standard
for Disclosures about Segments of an Enterprise and Related information" (ASBJ
Statement No.17 of March 27, 2009) and "Guidance on Accounting Standard for
Disclosures about Segments of an Enterprise and Related Information" (ASBJ
Guidance No.20 of March 21, 2008) are applied. Accordingly, segment information
on the six months ended September 30, 2009 is restated.
2. "Others" represents service-related businesses such as analysis, survey and
research.
3. "Adjustment" of segment income (loss) for the six months ended September
30, 2010 of (7,838) million yen includes intersegment eliminations of 708
million yen and corporate expenses of (8,546) million yen. "Adjustment" of
segment income (loss) for the six months ended September 30, 2009 of (7,576)
million yen includes intersegment eliminations of 674 million yen and corporate
expenses of (8,250) million yen. The corporate expenses consist of the
headquarters' research expenses, etc. that are not allocated to each reportable
segment.
4. U.S. dollar amounts have been converted from yen at the exchange rate of
JPY83.8 = U.S.$1, the approximate rate of exchange prevailing on September 30,
2010.
5. Amounts are rounded to the nearest million.
Forecast of Consolidated Results for the fiscal year ending March 31, 2011
(Millions of yen, millions of U.S. dollars)
+---------------+---------------+------------+
| | Year ending March 31, |
| | 2011 |
+ +----------------------------+
| | Yen | U.S. |
| | | dollars |
+---------------+---------------+------------+
| Net sales | JPY1,530,000 | $19,125 |
+---------------+---------------+------------+
| Operating | 83,000 | 1,038 |
| income | | |
+---------------+---------------+------------+
| Ordinary | 76,000 | 950 |
| income | | |
+---------------+---------------+------------+
| Net income | 42,000 | 525 |
+---------------+---------------+------------+
Reference: EPS forecast (year ending March 31, 2011)
JPY26.40
Notes:
1. U.S. dollar amounts have been converted from yen at the exchange rate of
JPY80 = U.S.$1, the estimated rate of exchange from October onwards.
2. Amounts are rounded to the nearest million.
Consolidated Business Results and Financial Condition
1. Overview of First Half (April 2010 - September 2010)
During the six months under review, despite concerns over the severe employment
situation and the fiscal health of Southern European countries, the global
economy on the whole continued to expand sustained by the high-rate growth in
China and other Asian emerging economies and the impact of the economic stimulus
measures implemented by various governments. The Japanese economy also, in spite
of the tough environment such as the continued high unemployment rate, improved
across the board, as capital investment and consumer spending recovered
gradually amid expanding exports primarily to Asian countries.
Under such circumstances, Toray Group has been working on measures to improve
profitability by comprehensively ensuring sales through every possible effort
and strengthening cost competitiveness, and actively pursued business expansion
under its medium-term management program Project IT-II (Innovation Toray II)
launched in April 2009.
Reflecting these efforts, Toray Group's earnings improved in the first half
through September 30, 2010, with consolidated net sales rising 18.7% compared
with the same period a year ago to JPY733.4 billion (US$8,752 million).
Operating income surged 674.1% to JPY42.5 billion (US$507 million). The Group
posted ordinary income of JPY40.5 billion (US$483 million), a remarkable
improvement of JPY43.1 billion from the same period a year earlier, and net
income of JPY24.9 billion (US$297 million), a turnaround of JPY31.2 billion
year-on-year.
Business performance by segment is described below. The figures for the same
period of the previous year used for comparison have been modified according to
the reportable segment.
Business Performance by Segment:
Fibers and Textiles
In Japan, demand for industrial-use materials led by airbags and other
automotive applications as well as general applications grew strongly while
sales volume expanded in apparel applications. Overseas, the polypropylene
spunbond business for diapers in Republic of Korea and China expanded, and
businesses including yarn and textile operations for air bag applications in
Thailand and Czech Republic and the textile business in China also performed
strongly.
Overall sales of Fibers and Textiles rose 11.4% to JPY273.1 billion (US$3,259
million) from the same period a year earlier and operating income soared 392.5%
to JPY13.6 billion (US$162 million).
Plastics and Chemicals
In the Plastic and Chemicals segment, recovery in demand continued in the resin
business on the back of growth in automobile sales thanks to eco-car subsidies
and sales increase in home electric appliances due to the heat wave. In the film
business, sales expanded in solar cell applications and for capacitors used in
hybrid automobiles as well as the industrial materials field in general such as
packaging applications.
On the whole, the total sales for Plastics and Chemicals rose 21.3% year-on-year
to JPY186.5 billion (US$2,226 million). Operating income jumped 238.7% to
JPY12.1 billion (US$144 million).
IT-related Products
The IT-related Products segment also performed strongly as sales for films and
processed film products used in flat panel displays expanded, reflecting growth
in demand for TV and other large displays and for small and mid-sized displays
such as for smartphones. Sales volume of semiconductor-related materials and
plasma display-related materials also increased.
Sales of IT-related Products grew 26.9% to JPY136.2 billion (US$1,625 million)
and operating income soared 186.9% to JPY21.3 billion (US$254 million).
Carbon Fiber Composite Materials
In the Carbon Fiber Composite Materials segment, sales and production volumes of
Torayca* and Torayca* prepreg (carbon fiber sheets impregnated with epoxy resin)
increased on the back of sustained recovery in demand in aircraft and space,
sports, and general industrial applications. Sales of carbon fiber molded
products (composites) also expanded led by demand in the IT field such as for PC
chassis.
Overall sales of the Carbon Fiber Composite Materials segment rose 51.9% on year
to JPY31.9 billion (US$380 million) while posting an operating profit of JPY1.2
billion (US$15 million), an improvement of JPY2.3 billion compared with the same
period of the previous fiscal year.
Environment and Engineering
In the Environment and Engineering segment, sales of reverse osmosis membranes
in the water treatment membrane business expanded for large-scale overseas
projects. Among domestic subsidiaries, while a trading company improved its
performance, sales at a construction subsidiary declined.
The total sales of Environment and Engineering increased 18.9% to
JPY73.5 billion (US$877 million). The segment posted operating loss of JPY1.5
billion (US$18 million), worsening by JPY1.2 billion from the same period a year
earlier.
Life Science
In the Life Science segment, sales volume of Feron*, a natural-type
interferon-ßpreparation, continued to increase, and shipments of REMITCH , an
oral antipruritus drug, and Toraymyxin*, an extracorporeal hemoperfusion device
for endotoxin removal, were also strong in the period.
Overall sales of Life Science rose 14.2% to JPY25.5 billion (US$304 million)
from the same period a year earlier and operating income surged 500.7% to JPY3.3
million (US$40 million).
New Businesses and New Investments
In the six-month period under review, the Company decided to enhance the
production capacity in Japan as well as abroad for polyester film Lumirror* used
in reflective plates and polarizing plates for liquid crystal displays as well
as in touch panels, and Toretec*, a polyethylene-type self-adhesive protective
film. This is aimed at ensuring a steady supply of optical films in anticipation
of growing demand fueled by the robust flat panel display-related market as well
as the further improvements in thinness and weight of touch panels.
2. Analysis of Financial Condition
As of September 30, 2010, Toray Group's total assets stood at JPY1,552.9 billion
(US$18,531 million), down JPY3.9 billion compared with the end of the previous
fiscal year. Current assets increased JPY44.2 billion from the end of the
previous fiscal year primarily due to higher levels of notes and accounts
receivable and work in progress. Fixed assets fell by JPY48.1 billion reflecting
decreases in property, plant and equipment and investment securities.
Total liabilities fell by JPY101.0 billion to JPY937.6 billion (US$11,189
million) compared to the end of the previous fiscal year, owing to a decline in
interest-bearing debts.
While there were changes such as a decline in net unrealized gains on securities
and fluctuation in foreign currency translation adjustments, net assets
increased by JPY97.0 billion compared with the end of the previous fiscal year
to JPY615.2 billion (US$7,342 million). This reflected the increases in common
stock and capital surplus resulting from the issuance of new shares, as well as
increased retained earnings from net income. Net assets less minority interests
stood at JPY568.6 billion (US$6,786 million).
3. Forecast of Consolidated Results
Going forward, the global economy on the whole is expected to stay on a gradual
recovery track, driven by the growing economies of emerging countries in Asia.
The outlook, however, remains unpredictable reflecting concerns related to the
waning impact of the stimulus measures in various countries and the credit
crunch, risk of slowdown in overseas economies due to possible switch to fiscal
austerity and downward risk in domestic economy such as sustained appreciation
of the yen and asset deflation.
Under such harsh business environment, Toray Group will further continue with
its efforts to enhance total cost competitiveness, reform its business
structure, and promote growth strategy with the aim of strengthening its
earnings base under Project IT-II.
While uncertainties continue to cloud the business environment outlook, the
Company revised upwards its full-year earnings forecasts from the earlier
estimates announced on August 3, taking into account the Group's profit
improvement efforts including thorough cost cutting and sales volume increase
under Project IT-II. For the fiscal year through March 31, 2011, the Company now
expects consolidated net sales of JPY1,530 billion (US$19,125 million),
operating income of JPY83 billion (US$1,038 million), and ordinary income of
JPY76 billion (US$950 million), and net income of JPY42.0 billion (US$525
million). The Company based its revised earnings forecasts on an estimated
exchange rate of JPY80 to US$1 for the period starting October 1, 2010.
Notes:
1. U.S. dollar amounts have been converted from yen at the exchange rate of
JPY83.8 = U.S.$1, the approximate rate of exchange prevailing on September 30,
2010.
2. U.S. dollar amounts of forecast for FY Mar/11 have been converted from yen
at the exchange rate of JPY80 = U.S.$1, the estimated rate of exchange from
October onwards.
3. Product names with (*) abbreviation are trademarks of Toray Industries,
Inc.
Disclaimer
Descriptions of predicted business results, forecasts and business plans
contained in this material are based on predictive forecasts of the future
business environment made at the present time. The material in this statement is
not a guarantee of the Company's future business performance.
For further information, please contact:
+---------------------------------+--------------------------------+
| Mr. Kenjiro Kamiyama | Mr. Ichiro Maeda |
| General Manager | General Manager |
| Investor Relations Department | Corporate Communications |
| Tel: +81-3-3245-5113 | Department |
| Fax: +81-3-3245-5459 | Tel: +81-3-3245-5178 |
| | Fax: +81-3-3245-5459 |
+---------------------------------+--------------------------------+
| | |
| Toray Industries, Inc. | |
| http://www.toray.com/ | |
+---------------------------------+--------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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