The business environment for the Toyobo Group in Japan through the end of the first quarter (April 1, 2013 to June 30, 2013) was characterized by the appearance of signs of recovery as the high values of the yen experienced a downward correction and stock prices rose against a background of economic policies that were initiated after the change in Japan's government administration. On the other hand, in the international economy, although moderate recovery continued in the United States, growth slowed in China and the newly emerging countries of Asia—which had been driving forces for growth—and the economies of Europe were stagnant because of the prolonged debt crises. As a result of these and other factors, uncertainties about future directions persisted.
Amid this operating environment, the Toyobo Group continued its activities aimed at becoming "The category leader, continuing to create new value that contributes to society in the environment, life science, and high-function products fields." Accordingly, Toyobo is proceeding with activities targeted at further expanding its businesses by developing specialty products and increasing their sales in domestic and overseas markets. In the environment field, Toyobo's reverse osmosis (RO) membrane elements for seawater desalination have been selected for use in the largest desalination plant in Saudi Arabia. Shipments of these membrane elements have begun. In the life science field, Toyobo successfully developed and began to market "Nerbridge", the first medical treatment device in Japan for the regeneration of damaged peripheral nerves.
In the high-function products businesses, Toyobo is focusing on the expansion of sales of new products in the films business, including an industrial film for LCDs with new optical properties and a shrinkable film for PET bottle labels that is thinner and stronger as well as contributes to increased productivity. In addition, Toyobo worked to further expand its overseas business activities. To gain a foothold in the shrink film market in China, which is expected to expand in the years ahead, Toyobo invested, together with a South Korean film manufacturer, in a joint venture in China.
As previously mentioned, the Toyobo Group is addressing business issues as well as implementing measures and improvements that will lead to further growth and expansion. As a result, sales in the first quarter of the fiscal year increased ¥2.2 billion (2.7%) in comparison with the same period of the previous fiscal year, to ¥85.3 billion, and operating income up ¥3.0 billion (131.5%), to ¥5.2 billion. Ordinary income increased ¥3.3 billion (182.4%), to ¥5.1 billion, and net income for the first quarter down ¥2.5 billion (501.1%), ¥3.0 billion.
The performance of the Toyobo Group during the first quarter was generally as forecast. Regarding the outlook for performance through the end of the second quarter (interim period) and the forecast for the full fiscal year, no changes have been made in the outlook announced on May 9, 2013.
As a result, we are forecasting consolidated net sales of ¥350.0 billion (up ¥10.0 billion year on year), with operating income of ¥22.0 billion (up ¥4.9 billion), and net income of ¥9.5 billion (up ¥1.9 billion).
I would like to offer my most sincere appreciation to our shareholders and investors, and ask for your continued support.
August 2013 Ryuzo Sakamoto
President & Chief Operating Officer
The business environment for the Toyobo Group in Japan through the end of the first quarter (April 1, 2013 to June 30, 2013) was characterized by the appearance of signs of recovery as the high values of the yen experienced a downward correction and stock prices rose against a background of economic policies that were initiated after the change in Japan's government administration. On the other hand, in the international economy, although moderate recovery continued in the United States, growth slowed in China and the newly emerging countries of Asia—which had been driving forces for growth—and the economies of Europe were stagnant because of the prolonged debt crises. As a result of these and other factors, uncertainties about future directions persisted.
