Asahi Kasei Group announces results for 1st quarter fiscal year ending June 30, 2013.
Overview of Consolidated Results
1. Consolidated group results Although the US economy showed signs of recovery with improving employment during the April–June quarter of 2013, the outlook for global economy remained obscure with slowing growth in China and other emerging economies and the European economy continuing to stagnate.
The Japanese economy was on a gradual path of recovery under the government’s economic policies, with conditions for exports improving due to depreciation of the exchange value of the yen and signs of recovery in consumer spending.
Consolidated net sales of Asahi Kasei Corp. and its consolidated subsidiaries and equity method affiliates (the Asahi Kasei Group) increased by ¥65.0 billion (17.8%) from a year ago to ¥430.0 billion, with increased deliveries in the Homes segment, and increased sales volume in the Chemicals segment and of pharmaceutical products in the Health Care segment, as well as the effect of the weaker yen.
Operating income increased by ¥17.5 billion (161.1%) to ¥28.3 billion. Ordinary income increased by ¥19.4 billion (238.5%) to ¥27.5 billion. Net income increased by ¥16.5 billion (522.4%) to ¥19.6 billion.
2. Results by operating segment
The Asahi Kasei Group’s operations are described by major business classification: seven reportable segments of Chemicals, Fibers, Homes, Construction Materials, Health Care, and Critical Care, together with an “Others” category. Beginning with the April–June quarter of 2013, the sequence of reportable segments has been changed to correspond with the classification of our four business sectors: Chemicals & Fibers, Homes & Construction Materials, Electronics, and Health Care.
In the Critical Care segment, results for the year-ago period were included beginning on April 27, 2012, while results were subject to consolidation throughout the entire period beginning with the April–June quarter of 2013.
CHEMICALS
Sales increased by ¥32.1 billion (19.9%) from a year ago to ¥193.1 billion, and operating income increased by ¥5.9 billion (135.8%) to ¥10.2 billion.Chemicals and derivative products operations were impacted by low market prices for acrylonitrile and high feedstock prices, but the depreciation of the yen and improved market prices for styrene monomer contributed to performance.
The depreciation of the yen also contributed to performance in polymer products operations, and shipments of synthetic rubber for fuel-efficient tires and engineering plastics for automotive applications were firm. In specialty products operations, the effect of the depreciation of the yen was most notable for ion-exchange membranes, and shipments of coating materials were firm.
FIBERS
Sales increased by ¥2.6 billion (9.8%) from a year ago to ¥28.8 billion, and operating income increased by ¥1.6 billion (265.3%) to ¥2.2 billion.Although the cost of petrochemical feedstocks rose, operating income in fibers increased with the effect of the weaker yen, increased sales volume of nonwovens such as Lamous artificial suede for automotive interiors and of Roica elastic polyurethane filament, and firm shipments of Bemberg cupro regenerated cellulose.
