The business
environment for the Toyobo Group in the first quarter of the fiscal
year ending March 31, 2013 (April 1, 2012, through June 30, 2012) was
characterized by moderate recovery in the Japanese economy as
reconstruction work continued following the Great East Japan
Earthquake. However, the outlook for future trends continued to be
uncertain because of concerns regarding electric power shortages and
other issues. In overseas economies also, concerns about a deceleration
in economic activity grew because of the prolongation of the debt
crises in Europe and the slowing of growth in China and other Asian
countries, which had acted as a driving force for growth.
Amid this operating environment, the Toyobo Group aims to become "The
category leader for providing new value in the environment, life
science, and high-function products fields" and is proceeding with
business activities targeted at expansion through emphasis on growing
overseas markets, where business opportunities abound. In the
environment field, Toyobo is working toward expansion in various
businesses, and its reverse osmosis membrane for seawater desalination
has been chosen for installation in one of the world’s largest seawater
desalination plants that will be built in Saudi Arabia. In addition,
Toyobo proceeded with the development of its position in the VOC
emissions treatment equipment business in Asia and expanded the range
of uses of its high-melting-point polyamide made from biomass. In the
life science field, Toyobo focused on expanding sales of enzymes for
self-monitoring of blood glucose sensors with improved analytic
precision and other products. In the high-function product field,
Toyobo concentrated on expansion of overseas business activities, and
its manufacturing and sales joint venture in China for production of
airbag fabrics which went into full operation. Also, Toyobo worked to
develop and market films used in the manufacturing process for ceramic
capacitors and other products, along with the rise in demand for
smartphones.
As previously mentioned, the Toyobo Group is addressing business issues
as well as implementing measures and reforms that will lead to growth
and expansion. However, in the current difficult environment, sales in
the first quarter of the fiscal year decreased ¥4.2 billion (4.8%) in
comparison with the same period of the previous fiscal year, to ¥83.1
billion, and operating income down ¥3.4 billion (60.4%), to ¥2.2
billion. Ordinary income down ¥3.7 billion (67.2%), to ¥1.8 billion,
and net income for the first quarter amounted to ¥0.5 billion.
For fiscal 2013, from the second quarter of the current fiscal year
onward, we will proceed with improving the product portfolio in
specialty businesses and are expecting improvement in performance.
However, Toyobo has revised its forecast of performance for the six
months ending September 30, 2012 and the full fiscal year ending March
31, 2013, due to a severer business environment than initially expected.
As a result, we forecast net sales for the subject fiscal year decrease
¥10.0 billion from initially expected to ¥355.0 billion. Operating
income declines ¥6.0, to ¥18.0 billion, ordinary income down ¥6.0
billion, to ¥15.0 billion, and net income for the period of ¥6.4
billion.
I would like to offer my most sincere appreciation to our shareholders
and investors, and ask for your continued support.
