Trade Resources Market View The Tokyo-Based Manufacturer May Fall a Few Billion Yen Short of Its Full-Year Forecast

The Tokyo-Based Manufacturer May Fall a Few Billion Yen Short of Its Full-Year Forecast

Toray Industries is expected to report a 30% jump in group?operating profit for last quarter, which saw solid performance in textiles and growth in carbon fiber composites.

But with other segments missing targets, the Tokyo-based manufacturer may fall a few billion yen short of its full-year forecast.

October-December consolidated operating profit likely came in slightly above 31 billion yen ($292 million).

Sales probably rose 20% to around 500 billion yen. In textiles, exports of functional apparel and clothing materials recovered, thanks to a weak yen. Sales of disposable-diaper materials and automotive textiles grew.

Meanwhile, Toray shipped more carbon fiber composites for aircraft as well as general industrial uses, such as tanks for shale gas. Composites used in water treatment also sold well.

Smartphone-related materials, such as films used in touch screens, are among the products that appear to have underperformed. China failed to provide the sales growth Toray had expected, and prices are also falling. Sales of LCD materials are down on poor television sales.

Sales of automotive plastics grew in volume, but demand for films used in solar panels slackened. Overall, profit margins suffered as prices failed to keep up with rising raw materials costs.

The company is forecasting a 120 billion yen group operating profit for the year ending March 31. While Toray still looks likely to beat the all-time high of 107.7 billion yen earned in fiscal 2011, it might not reach its own estimate.

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Toray Operating Profit Seen up 30% for October-December Quarter