(For the three months ended June 30, 2017)
English translation from the original Japanese-language document
(All financial information has been prepared in accordance with accounting principles generally accepted in Japan) August 1, 2017
Company name : TEIJIN LIMITED (Stock code 3401) www.teijin.com
Contact person : Hiroki Sorate General Manager, IR Section TEL: +81-(0)3-3506-4395
Finance & Investor Relations Department
Highlight of the first quarter of FY2017 (April 1, 2017 through June 30, 2017)
(Amounts less than one million yen are omitted)
Consolidated financial results (Percentages are year-on-year changes)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
For the three months ended June 30, 2017
Million yen %
Million yen %
Million yen %
Million yen %
198,239 13.8
19,145 22.0
20,039 39.2
13,396 17.1
For the three months ended June 30, 2016
174,226 -9.5
15,697 -4.4
14,400 -19.9
11,436 2.2
cf. Comprehensive income for the three months ended June 30, 2017 : 29,832 million yen (For the three months ended June 30, 2016: -5,870 million yen)
E.P.S. *
Diluted E.P.S.
For the three months ended June 30, 2017 For the three months ended June 30, 2016
Yen 68.09
58.16
Yen 61.68
52.74
* E.P.S.: Earnings per share
(Notes) The Company consolidated its common shares at a ratio of five shares to one share on the effective date of October 1, 2016. Accordingly, the
E.P.S. and the Diluted E.P.S. are calculated on the assumption that the consolidation of shares is conducted at the beginning of the preceding fiscal year.
Consolidated financial position
Total assets
Net assets
Shareholders' equity ratio
As of June 30, 2017
Million yen
Million yen
%
972,292
375,680
37.2
As of March 31, 2017
964,053
351,829
35.1
cf. Shareholders' equity as of June 30, 2017 : 362,169 million yen (As of March 31, 2017: 338,383million yen)
Dividends
Dividends per share
Period
1Q
2Q
3Q
4Q
Annual
FY2016
FY2017
Yen
―
―
Yen 5.00
Yen
―
Yen
30.00
Yen
―
FY2017(Outlook)
30.00
―
30.00
60.00
Note: Revision of outlook for dividends in the first quarter: No
*The Company consolidated its common shares at a ratio of five shares to one share on the effective date of October 1, 2016. Accordingly, with regard to the amounts of the dividend per share for FY2016, the interim dividend per share reflects the amount before the impact of the consolidation of shares, while the year-end dividend per share reflects the amount after the impact of the consolidation of shares. Therefore, disclosure of the annual dividend per share is omitted.
Forecast for operating results in the year ending March 31, 2018 (FY2017)
(Percentages are interim-on-interim and year-on-year changes)
Net sales
Operating income
Ordinary income
Profit attributable to owners of parent
E.P.S.
FY2017 interim
Million yen %
Million yen %
Million yen %
Million yen %
Yen
415,000 17.5
33,000 22.2
34,000 27.4
26,000 21.7
132.15
FY2017
855,000 15.3
64,000 13.2
65,000 16.2
44,000 -12.2
223.64
Note: Revision of outlook for FY 2017 consolidated operating results in the first quarter: Yes
Appropriate Use of Forecasts and Other Information and Other Matters
Cautionary statement on forward-looking statements
All forecasts in this document are based on management's assumptions in light of information currently available and involve certain risks and uncertainties. Actual results to differ materially from these forecasts. For information on these forecasts, refer to "Qualitative Information on Outlook for Operating Results", beginning on page 5.
-
Qualitative Information and Financial Statements
( 1 ) Qualitative Information on Results of Operations 1 ) Analysis of Consolidated Results of Operations
Global economic conditions in the three months ended June 2017 saw signs of improvement on the whole, underpinned by an upturn in internal and external demand in both developed and emerging countries, although the outlook for political conditions and public policy remained uncertain in Europe and the U.S. Meanwhile, the Japanese economy followed a gradual expansionary course on the whole, mainly reflecting a recovery in corporate earnings due to an increase in exports, along with further improvement in personal consumption.
In this environment, for the three months ended June 30, 2017, consolidated net sales totaled ¥198.2 billion, an increase of 13.8% year on year. This increase was primarily due to generally steady sales across all businesses on the whole and the impact of U.S.-based Continental Structural Plastics Holdings Corporation joining the composites business following its acquisition in January 2017. Operating income rose 22.0% to ¥19.1 billion, due to the impact of recording consideration for the licensing out of an investigational antibody candidate targeting tau for a possible new treatment of Alzheimer's disease to Merck & Co., Inc. Ordinary income increased 39.2% to ¥20.0 billion. Profit attributable to owners of parent increased 17.1% to ¥13.4 billion. Earnings per share rose ¥9.94 to ¥68.9.
2 ) Business Segment ResultsEffective from the three months ended June 30, 2017, Teijin Limited ("the Company") reclassified its previous four reportable operating segments, Advanced Fibers and Composites, Electronics Materials and Performance Polymer Products, Healthcare, and Trading and Retail, into two reportable operating segments: the Materials Business and the Healthcare Business. This change was made in line with the Company's reorganization to accelerate growth and transformation strategies based on the medium-term management plan announced in February 2017. The figures for the year-ago period have been recalculated in accordance with the new segment classification for comparison purposes.
- Materials Business Field
In the Materials Business Field, sales were ¥146.3 billion, up ¥20.8 billion year on year, while operating income was
¥8.2 billion, down ¥0.4 billion.
Material Business GroupSales of aramid fibers expanded for automotive- and infrastructure -related applications.
In Aramid Fibers, sales of Twaron para-aramid fibers expanded firmly as a whole, centered on automotive friction materials and ballistic protection applications. Sales were firm for Technora para-aramid fibers both for automotive applications in Japan and also for infrastructure-related applications overseas. Technora is being used in an expanding range of applications under more extreme conditions given the positive assessment of its outstanding fatigue resistance, chemical barrier and other properties.Sales of Teijinconex meta-aramid fibers were robust for use in automotive applications such as turbocharger hoses, as well as protective clothing and industrial applications.
In Carbon fibers, Sales of TENAX carbon fibers continued to grow steadily for use in aircraft, reflecting firm orders from aircraft manufacturers. Among other applications, sales were robust for compound applications in the Asian region and general industrial applications in Europe. Additionally, eyeing the expansion of sales of Pyromex Oxidized PAN fiber for aircraft brake pads, the conversion of a carbon fiber production line into a Pyromex production line at Toho Tenax America, Inc. is progressing steadily, and preparations for the start of production are being advanced. Furthermore, to address further growth in demand for carbon fiber primarily in North America, we completed the acquisition of land in the U.S. in 2016 and are considering the construction of a new carbon fiber plant.
In Resin and Plastics Processing, our mainstay Panlite and Multilon polycarbonate resin products maintained profitability, owing to high capacity utilization maintained at both production sites in the PRC and Japan, plus an improved sales mix, despite a slight year-on-year increase in raw material prices. High-performance compounds are a key area of focus. In automotive applications, where the shift from existing materials to resins is progressing rapidly, we are strengthening sales of a copolymer polycarbonate compound featuring both impact resistance and high surface hardness to applications such as automotive interior panels and a polycarbonate and polyester alloy compound for use in automotive exterior materials that require heat resistance and weatherability.
In Films, reflective films for use in liquid crystal display (LCD) televisions remained under pressure in terms of both volume and pricing due to the market penetration of Chinese manufacturers' products. We maintained favorable sales of Purex release films for manufacturing processes mainly for use in multilayer ceramic capacitors for smartphones and other devices. Reverse-dispersion solvent-cast retardation film using specialty polycarbonate resin saw firm sales for use as an organic electroluminescent display (OLED) antireflective film for smartphones and tablets.
Polyester Fibers & Trading and Retail Business GroupExpanded business in functional materials for apparel and posted firm sales of automotive-related materials.
In the Fiber Materials and Apparel, fiber materials saw strong sales of functional materials for sports and outdoor use, such as the DELTA series, in Europe, the Americas and Japan. In addition, sales of functional materials for uniforms grew substantially due to large new orders captured in Japan and overseas. In functional textiles and apparel, we recorded steady performance across the business as a whole, with solid sales to specialty stores for men's apparel and to strongly price-conscious apparel manufacturers and retailers, despite continuing weakness in domestic market conditions.
In the Industrial Textiles and Materials, particularly sales of automotive materials, sales of reinforcement materials for tires, reinforcement materials for conveyor belts and automotive hoses and air-bag fabric were firm. However, sales of car seat fabrics struggled due to production adjustments by customers. In other industrial textiles and related materials, we recorded solid sales of non-woven fabrics for reverse osmosis membrane support layers for water treatment and exports of aramid fiber materials performed strongly, despite a downturn in sales of civil engineering materials. In living related materials, sales were also solid for wiping-related materials and personal hygiene products. In polyester fibers, we are striving to further strengthen our competitiveness by realigning our domestic production configuration and by transferring production of certain items to subsidiaries in Thailand.
Teijin Limited published this content on 01 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 01 August 2017 02:35:01 UTC.
Original documenthttps://www.teijin.com/ir/library/consolidated_results/pdf/cr_170801.pdf
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