Tosoh reports sharp rise in annual profit

Tokyo —  Tosoh Corp. has posted a 23-6-percent rise operating income to ¥51.4 billion (€383.9 million) on net sales of ¥809.7 billion –  4.5 percent higher the prior year total. Higher sales of rubber materials contributed to the gains.

The sharp rise in earnings for the 12 months to 31 March was due to a decline in fuel prices, improved trade conditions with the weakening yen, and an increase in unit sales, said an 11 May Tosoh release

Tosoh is a producer and supplier of chloroprene rubber (CR) and chlorosulphonated polyethylene (CSM), a business which is positioned within its Petrochemical Group.

Shipments of both these rubber materials benefited from improved export prices because of the weaker yen, the company reported.

Sales of urethane raw materials – produced by Tosoh’s Chlor-alkali Group – expanded in Japan in response to firm demand from the automobile-related, construction, medical, and other markets.

Exports of urethane raw materials declined because of a slowing Chinese economy and softening price, the group, however, added.

Net sales for the speciality group in fiscal 2015 amounted to ¥174.9 billion, an increase of ¥21.4 billion, or 14 percent from the group’s net sales for the preceding fiscal year. Operating income surged by nearly 56 percent to ¥30 billion.

Shipments of high-silica zeolites (HSZ) increased, especially for automobile exhaust system catalytic converters. Zirconia shipments for decorative and dental applications likewise increased, as did shipments of electrolytic manganese dioxide (EMD) for dry cell batteries.

For the Petrochemical Group as a whole, Tosoh posted net sales for fiscal 2015 of ¥223.7 billion – almost flat on the prior year figure. However, the group’s operating income fell 53.2 percent to ¥6.9 billion due partly to a drop in prices in line with the decline in naphtha prices.