TOKYO — Textile maker Toray Industries saw net profit rise 11% to 14.7 billion yen ($142 million) in the April-June quarter on strong demand for carbon fibers that offset goodwill amortization expenses.
Operating profit jumped 19% on the year to 21.5 billion yen on a 11% increase in sales to 448.6 billion yen, according to the results released Thursday.
Toray acquired one South Korean and one U.S. company in the previous fiscal year, which boosted last quarter’s sales by about 23 billion. But the amortization of goodwill from the two subsidiaries weighed down profit.
Carbon fiber composite materials performed well, particularly fibers used in aircraft. “Our products are being used in an increasing number of new planes, in addition to existing models,” said Vice President Toru Fukasawa.
Films for LCD screens drove its information-technology-related segment. And its plastics and chemicals segment posted profit growth on surging sales of auto-related plastics and solar cell films.
For the April-September term, the company downgraded its forecast for the IT-related segment, projecting weaker-than-expected smartphone production. But it raised the outlook for its carbon fiber business and maintained its companywide forecast.
Toray also stuck by its full-year earnings guidance. It sees sales rising 17% to 2.15 trillion yen and net profit gaining 17% to 70 billion yen.
