Date: November 10, 2017
CONSOLIDATED FINANCIAL RESULTS(NEWS FLASH)AIR WATER INC.
Head Office: 12-8, Minami semba 2-chome,
Chuo-ku, Osaka, Japan
Qualitative Information relating to Second Quarter Earnings
Explanation of Operating Results
1) Operating results for the current period
The Japanese economy in the cumulative second quarter of the current fiscal year was on a gradual recovery trend, with further improvements in corporate earnings and employment situation and steady performance in capital investment and consumer spending, thanks partly to the effects of the government's economic measures.
With regard to overseas economies, although uncertainties about the future such as increasing geopolitical risks still exist in some countries and regions, the U.S. and European economies performed strongly, and economies in China and other emerging countries in Asia also continued to recover moderately.
With regard to the results of our corporate group under these circumstances, our industrial gas business saw strong performance in regional gas businesses which center on gas supply via lorries and cylinders, backed by steady gas demand from domestic manufacturing industries, although there were impacts of facility problems at our customers' plants on our on-site gas supply to blast furnaces.
Our chemical business, which had been suffering from sluggish performance, particularly in the tar distillation business, achieved a return to profitability, due to improvements in market conditions of our products and progress made in the structural reform of our functional chemicals sector. In addition to satisfactory performance of our agriculture and food business, particularly in the beverage field, our medical business, which promoted the development of new markets, as well as our seawater business, aerosol business and information and electronics materials business, which comprise our "other business" segment each improved to exhibit strong performance, leading to an expansion of business performance of our corporate group.
As a result, for this period, sales were ¥358,691 million (114.3% that of the corresponding period of the previous year), operating income was ¥17,656 million (102.2%), ordinary income was 18,764million (109.3%) and a quarterly net income attributable to owners of parent was 10,917 million (105.7%).
Consolidated results by segment for this period
Due to changes in the structure of our group's organization, our "Logistics Business," which was previously included in our "Other Business," is now separately presented as a reporting segment, effective the first quarter consolidated cumulative accounting period.
Also, the business results management segments were changed, so that Air Water Materials Inc. and other eight companies, which were previously classified under "Industrial Gas Business," have been re-classified into "Other Business."
Financial profit and loss including funding costs, which were previously presented in each segment, have collectively been recorded as "Adjustments."
The segment information for the previous year's second quarter consolidated cumulative period has been revised in accordance with the above new reporting segment classification and calculation method.
(Millions of yen)
Sales Ordinary profit or loss(▲)
Three months ended September 30, 2017
% compared with the same period of the previous year
Three months ended September 30, 2017
% compared with the same period of the previous year
Industrial Gas | 76,706 | 97.5% | 6,432 | 93.2% |
Chemical | 33,837 | 107.7% | 812 | - |
Medical | 77,171 | 143.5% | 3,225 | 111.6% |
Energy | 18,987 | 111.1% | 999 | 100.5% |
Agriculture and Food | 69,566 | 122.7% | 3,079 | 121.3% |
Logistics | 22,276 | 106.6% | 1,127 | 96.6% |
Other | 60,145 | 108.7% | 3,593 | 102.8% |
(adjustment) | - | - | ▲507 | 147.7% |
Total | 358,691 | 114.3% | 18,764 | 109.3% |
Note: The adjustments to ordinary income are costs incurred at the company's headquarters division and research and development division which were not allocated to each reporting segment, financial profit and loss and others.
AIR WATER Inc. published this content on 10 November 2017 and is solely responsible for the information contained herein.
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