Trade Resources Industry Views Toray Industries' Group Operating Profit Apparently Grew 13% on The Year

Toray Industries' Group Operating Profit Apparently Grew 13% on The Year

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Tags: carbon fiber

Toray Industries’ group operating profit apparently grew 13% on the year to around 50 billion yen ($462 million) for the April-September half as carbon fiber sales made up for lower-than-expected sales in other segments.

The figure is in line with forecasts. Sales rose 15% to around 980 billion yen, short of the projected 17% gain to 1 trillion yen.

The carbon fiber composite materials segment appears to have exceeded its profit forecast. Carbon fiber sales for airplanes were strong, and demand for use in high-end automobiles is on the rise. Toray booked goodwill amortization resulting from the acquisition last fiscal year of a U.S.-based carbon fiber maker, but the profit growth absorbed the cost.

The fibers and textiles segment as well as the segment for information-technology-related products both apparently undershot expectations, posting profit declines. The fibers and textiles segment saw sluggish sales for domestic clothing manufacturers. The weakening yen lifted raw materials costs.

Production adjustments by clients weighed on the segment for IT-related products, and product prices came in lower than expected.

While carbon fibers have continued to perform well, the rise in raw materials costs from the soft yen warrants caution. The company will likely stick with its current full-year guidance of sales climbing 17% to 2.15 trillion yen and operating profit growing 24% to 130 billion yen. Depending on exchange rates, the company could miss the forecasts.

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Toray's Operating Profit Seen up 13% on Carbon Fiber Sales