Tomen Announces Record High Profits in Fiscal 2000 Results
2001-05-16
Tomen Corporation, one of Japan's leading trading companies, announced its ordinary profit of 25.0 billion yen and net income of 10.1 billion yen or 16.7 yen per share on a consolidated basis in its financial results for fiscal year 2000 (April 1, 2000 through March 31, 2001). These figures are the highest in the company's history and demonstrate both the profitability of Tomen's five business pillars as well as the success of the implementation of its restructuring plan announced in February 2000.
[Consolidated Results of fiscal 2000, April 1, 2000 through March 31, 2001]
Millions of Yen |
| | Results | Previous year* | Difference | | Total Trading Transaction | 2,516,523 | 2,866,908 | -350,385 | | Operating Income | 34,854 | 25,826 | +9,028 | | Ordinary Profit | 24,963 | 15,170 | +9,793 | | Net Income | 10,096 | -94,526 | +104,622 |
|
*Previous year result of April 1, 1999 through March 31, 2000
Total trading transaction on a consolidated basis was reduced to 2,517 billion yen due to the withdrawal from insufficiently profitable businesses including the near completion of the liquidation of 207 affiliated companies. Operating income was increased to 34.9 billion yen which resulted from cutting general and administrative expenses, and reducing the number of Tomen employees to 1,475 from 1,702 the previous year.
Tomen's record profits were generated by its five business pillars, which include chemicals, power generation, foodstuffs, textile and IT & telecommunications. Tomen Electronics Corp. [7558], in which the Tomen group holds 44% equity, recently announced its net profit of 3.5 billion yen, the eighth consecutive year in which it achieved record-breaking profits. Styrindo Mono Indonesia (SMI), Tomen's largest joint venture in Indonesia, which manufactures styrene monomer, achieved remarkable performance after its capacity expansion.
In March 2001, Tomen spun off its life science business to create Arysta LifeScience Corp., Japan's most highly functional company in the industry, partnering with Nichimen and Toyota Tsusho which hold 40% and 2% equity, respectively. The new entity started operation on April 1, 2001.
[Consolidated business projection of fiscal 2001 ending March 31, 2002]
Millions of Yen |
| | 6 month to
September 30, 2001 | 12 month to
March 31, 2002 | | Total Trading Transaction | 1,300,000 | 2,600,000 | | Ordinary Profit | 13,000 | 33,000 | | Net Income | 5,000 | 11,000 | |
Tomen also announced its business projection for the fiscal year ending March 31, 2002, which projects an ordinary profit of 33 billion yen, exceeding this year by approximately 8 billion yen.
Mr. Morihiko Tashiro, president of Tomen said, "The results clearly demonstrate that our business portfolio is strong and profitable. I am very proud to show our stakeholders the value of their continued support of our efforts." He continued, "We have achieved what we promised we would a year ago. We will reach high and move forward to the next stage of our plan to further strengthen our company."
Tomen took important steps during the past year to strengthen its foundation and provide for its stability and growth. In March 2000, Tomen and Toyota Tsusho formed a business and capital alliance and a Coordinating Committee to utilize both business expertise and management resources to strengthen their market positions in various areas, including wind power generation, cable television, liquid petroleum gas, synthetic resins, petrochemical materials and semiconductors.
Then, in September 2000, Tomen completed its capital increase with the allocation of new shares of 31 billion yen to its strategic partners including Toyota Tsusho, which acquired an 11.5% equity stake in Tomen, making it Tomen's largest shareholder.
During the fiscal year 2000, there were significant developments in Tomen's environmental related businesses, demonstrating its unyielding commitment to environmental protection. In June, Tomen completed the construction of a 170 MW wind power station in the south of Italy, one of the world's largest wind power stations. At the same time, Tomen began construction of Japan's largest wind power plant of 32.5 MW in Shimokita Peninsula in 2001. It plans to accept the Japanese government's challenge to help increase the nation's wind power capacity by tenfold by 2010.
Many of its businesses in the 60 countries in which it operate expanded successfully during the past year. For example, Korea Polyol Co. Ltd (KPC) and Korea Fine ChemicalCo. Ltd (KFC), which are Tomen's urethane materials joint ventures in South Korea, achieved their highest profits ever in fiscal 2000 as demand for urethane remains high from China and other countries in the region.
In the coming year, Tomen plans to continue on its course to increase profitability and solidify its leadership positions in its five business pillar areas.
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