As for the business environment for the Toyobo Group (hereinafter referred to as the “Group”) in the three months ended June 30, 2017, in the global economy, the economy in the United States continued to expand at a moderate pace backed by the domestic demand and economic slowdown was alleviated in China due to the authorities’ economic prop-up measures. In Europe, the economy made a gradual recovery in the Euro area, despite concerns about the impact of the weak British pound. Meanwhile, in Japan, the economy enjoyed a mild recovery based on background of strong foreign demand and an improvement in capital expenditure.
Amid this operating environment, the Group continued its activities aimed at becoming “The category leader, continuing to create new value that contributes to society in the environment, healthcare, and high-function products fields.” Accordingly, the Group is expanding its businesses in Japan and overseas markets through developing specialty products. Also, during the three months under review, the Group promoted business activities in accordance with the five action plans set forth in the Medium-Term Management Plan for the four years covering the period through the fiscal year ending March 2018, namely “accelerating overseas business development,” “developing new products and creating new businesses,” “increasing competitiveness of domestic businesses,” “improving asset efficiency,” and “strengthening global Group management.”
As a result, consolidated net sales in the three months ended June 30, 2017 decreased ¥4.3 billion (5.1%) over the same period of the previous fiscal year, to ¥78.5 billion. Operating profit increased ¥0.4 billion (8.3%), to ¥5.0 billion, ordinary profit increased ¥0.9 billion (27.2%) to ¥4.3 billion, and profit attributable to owners of parent increased ¥0.4 billion (15.4%), to ¥2.8 billion.
The outlook for the business environment during the fiscal year ending March 31, 2018 is that while the consumer consumption will accelerate in the United States and China, the domestic economy is expected to be lead by the export with a background of the recovery of overseas economy.
In view of this outlook for the operating environment, the Toyobo Group will continue to strengthen its earnings base to cope successfully with changes in the external environment. The Group aims to become "the category leader that continues to create new value that contributes to society in the environment, healthcare, and high-function products fields." The Group works for further enhancing its profitability by focusing its management resources on businesses that are profitable and have high growth potential, as it aggressively expands its business activities in Japan and overseas and improving its business portfolio, such as increasing the efficiency of its capital, strengthening its financial position, and other factors.
The performance of the Toyobo Group in the three months ended June 30, 2017 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 11, 2017.
At the 159th General Meeting of Shareholders (the “Meeting”) held on June 28, 2017, the Company obtained approval to conduct a consolidation of shares, and it plans to implement a 10:1 share consolidation of common stock with an effective date of October 1, 2017.
Without factoring in the consolidation of shares
・Net profit per share in the consolidated earnings forecast (full year) for the fiscal year ending March 31, 2018: ¥15.21
・Year-end dividend per share (forecast) for the fiscal year ending March 31, 2018: ¥3.50
I would like to offer my most sincere appreciation to our shareholders and investors, and ask for your continued support.
President & Chief Operating Office