Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Tokyo  >  Toray Industries Inc    3402   JP3621000003

TORAY INDUSTRIES INC (3402)
Mes dernières consult.
Most popular
  Report  
SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsofficial PublicationsSector newsTweets
OFFRE ETE Zonebourse : Jusqu'à 6 mois offerts sur tous les portefeuilles

Japan Inc scandals widen as Toray admits cheating

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/28/2017 | 07:56am CEST
Toray Industries' president, Akihiro Nikkaku and his executives bow their heads after a news conference in Tokyo

TOKYO (Reuters) - Japan's Toray Industries Inc (>> Toray Industries Inc) on Tuesday revealed 149 cases of quality data falsification at a materials-making subsidiary spanning eight years, in the latest quality-assurance scandal to hit a Japanese manufacturer.

TOKYO (Reuters) - Japan's Toray Industries Inc (>> Toray Industries Inc) on Tuesday revealed 149 cases of quality data falsification at a materials-making subsidiary spanning eight years, in the latest quality-assurance scandal to hit a Japanese manufacturer.

The world's largest maker of carbon fiber composite materials said the cheating involved products including tire-strengthening cords sold to 13 clients by Toray Hybrid Cord Inc. A broader probe into possible wrongdoing across the group was ongoing.

Toray did not name any affected customers but ruled out U.S. aircraft maker Boeing Co (>> Boeing Company (The)), for which the Japanese company is a major supplier of carbon fiber used in passenger jets, and Uniqlo parent Fast Retailing Co Ltd (>> Fast Retailing Co Ltd), which uses its products in its best-selling Heattech clothing line.

Japanese companies are facing growing pressure to disclose quality-assurance failings after widespread data falsification was uncovered at Kobe Steel Ltd (>> Kobe Steel, Ltd.).

Toray said its subsidiary became aware of its problems in July last year, and the group learnt of them in October. It only decided to publicly disclose the cheating after rumors appeared earlier this month in an anonymous online post.

"There were no legal violations or safety problems; this was between us and our customers, and so there was no need to disclose it," Toray President Akihiro Nikkaku told a news conference.

The internet post forced the company to "give a proper explanation before rumors spread", Nikkaku said, adding that even if similar cases were found in the future the company would not be required to make them public.

The comments are likely to fuel concerns about Japanese manufacturers' governance and their commitment to stamp out cheating.

Last week Mitsubishi Materials Corp (>> Mitsubishi Materials Corp) admitted that it may have sent products with falsified data to scores of customers, and possibly continued to ship these products for months after the wrongdoing was discovered.

Automakers Nissan Motor Co Ltd (>> Nissan Motor Co Ltd) and Subaru Corp (>> Subaru Corp) have also been hit by compliance scandals.

The admissions threaten to damage trust in Japan's manufacturing industry at a time of growing competition from its Asian neighbors such as China and South Korea.

Toray's shares plunged more than 8 percent following the announcement and closed down 5.3 percent in a flat broader market.

HIGH FLYER

While Toray is not among the most-recognized Japanese brands internationally, its strong, light carbon fiber materials are used in Boeing's 777X passenger jet and 787 Dreamliner.

The company is represented at the heart of Japan's conservative corporate establishment, with former president Sadayuki Sakakibara heading the Keidanren business lobby.

Toray said it was in the process of notifying clients about the falsification and had not heard back from them about performance or safety issues with the fiber products used to strengthen tires and other industrial goods.

The affected customers were mostly in Japan but included at least one in South Korea.

Two quality control managers had led the falsification, motivated partly by pressure to meet product delivery targets. The two managers responsible for the cheating have been transferred to different positions.

Toray found the cases after an in-house survey pointed to the malpractice, prompting an internal investigation which Nikkaku said he hoped to complete by March next year.

Combined revenue of the 149 cases amounted to 150 million yen ($1.35 million) and would not have a big earnings impact, Nikkaku said.

($1 = 111.2400 yen)

(Reporting by Sam Nussey and Makiko Yamazaki; Editing by Stephen Coates)

By Sam Nussey and Makiko Yamazaki

Stocks mentioned in the article
ChangeLast1st jan.
BOEING COMPANY (THE) 0.46% 342.69 Delayed Quote.15.67%
FAST RETAILING CO LTD 3.48% 51790 End-of-day quote.13.62%
KOBE STEEL, LTD. -4.11% 1050 End-of-day quote.-0.38%
MITSUBISHI MATERIALS CORP -1.02% 2994 End-of-day quote.-26.17%
NISSAN MOTOR CO LTD 0.46% 1081 End-of-day quote.-4.34%
SUBARU CO LTD 0.00% 4790 End-of-day quote.3.90%
SUBARU CORP 0.00% 3341 End-of-day quote.-7.50%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TORAY INDUSTRIES INC
06/14TORAY INDUSTRIES : Patent Issued for Vascular Prosthesis (USPTO 9987119)
AQ
06/11Mitsubishi Materials unveils boardroom shake-up as data tampering scandal dee..
RE
05/31HITACHI : chairman assumes post to lead Japan's powerful business body
AQ
05/25TORAY INDUSTRIES : Researchers Submit Patent Application, "Skin Adhesive Sheet, ..
AQ
05/24TORAY INDUSTRIES : celebrates $45 million expansion of Front Royal plant
AQ
05/17TORAY INDUSTRIES : Patent Application Titled "Composite Hollow Fiber Membrane an..
AQ
05/17TORAY INDUSTRIES : Patent Issued for Sandwich Structure and Integrally Formed Ar..
AQ
05/15HITACHI : and Toray are Commissioned by NEDO to Implement the Demonstration Proj..
AQ
05/11TORAY INDUSTRIES : Volunteer honored
AQ
05/10TORAY INDUSTRIES : Studies from Toray Industries Add New Findings in the Area of..
AQ
More news
News from SeekingAlpha
05/11Toray Industries Inc. ADR 2018 Q4 - Results - Earnings Call Slides 
02/13Toray Industries Inc. ADR 2017 Q3 - Results - Earnings Call Slides 
01/21WEEK IN REVIEW : Sinocare Eyes $4 Billion Deal For J&J Diabetes Device Business 
01/17De-Risking Catalysts Aplenty - Cara Therapeutics 
2017WALL STREET BREAKFAST : Make Way For The Tax Overhaul 
Financials ( JPY)
Sales 2019 2 340 B
EBIT 2019 -
Net income 2019 107 B
Debt 2019 711 B
Yield 2019 1,81%
P/E ratio 2019 13,08
P/E ratio 2020 11,80
EV / Sales 2019 0,91x
EV / Sales 2020 0,86x
Capitalization 1 423 B
Chart TORAY INDUSTRIES INC
Duration : Period :
Toray Industries Inc Technical Analysis Chart | 3402 | JP3621000003 | 4-Traders
Technical analysis trends TORAY INDUSTRIES INC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 15
Average target price 1 142  JPY
Spread / Average Target 31%
EPS Revisions
Managers
NameTitle
Akihiro Nikkaku President, CEO, COO & Representative Director
Yuji Fukuda Director, Manager-Finance & Accounting
Tetsuya Tsunekawa Managing Director & GM-Research
Kazushi Hashimoto Representative Director, VP & Head-Overall Sales
Koichi Abe Representative Director & Vice President
Sector and Competitors
1st jan.Capitalization (M$)
TORAY INDUSTRIES INC-18.83%12 855
3M COMPANY-13.26%121 214
SIEMENS2.99%116 493
GENERAL ELECTRIC COMPANY-23.78%114 646
HONEYWELL INTERNATIONAL-2.04%112 002
ILLINOIS TOOL WORKS-10.91%49 364