Tomen's Fiscal 2001 Results and Fiscal 2002 Projection Confirms Steady Progress
2002-05-15
Tomen Corporation , Japan's leading trading company, announced today financial results for the fiscal year 2001 ended March 31, 2002. In the midst of the challenges posed by a global recession, the results confirm Tomen's steady progress in the completion of its three-year renovation plan ending March 31, 2003.
[Consolidated Result of fiscal 2001, April 1, 2001 through March 31, 2002]
Millions of Yen |
| | Result | Previous year* | Difference (%) | | Total Trading Transaction | 2,384,848 | 2,516,523 | -131,675 (-5.2%) | | Ordinary Profit | 23,174 | 24,963 | -1,789 (-7.2%) | | Net Income | 4,710 | 10,096 | -5,386 (-53.3%) |
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*Previous year result of April 1, 2000 through March 31,2001
Total trading transaction was 2,385 billion yen, compared with total trading transaction of 2,517 billion yen for the previous year. The decline reflects the implementation of the renovation plan by withdrawing from non-performing assets in the construction & real estate businesses and in the steel business.
The ordinary profit was 23.2 billion yen, compared with an ordinary profit of 25.0 billion yen for the previous year. The drop in the ordinary profit results from a loss on Styrindo Mono Indonesia (SMI), a joint venture manufacturing styrene monomer in Indonesia, due to the market price fall during the fiscal year. The net income was 4.7 billion yen, compared with a net income of 10.1 billion yen the previous year. The loss of 5.0 billion on valuation of holding securities in the sluggish stock market forced Tomen to lower its net income for the fiscal year.
Tomen also announced its business projection for the fiscal year ending March 31, 2003, which projects total trading profit of 2,380 billion yen, ordinary profit of 26.5 billion yen and net income of 10.5 billion yen.
[Consolidated Business Projection of fiscal 2002 ending March 31, 2003]
Millions of Yen |
| | 6 month to September 30, 2001 | 12 month to March 31, 2003 | | Total Trading Transaction | 1,160,000 | 2,380,000 | | Ordinary Profit | 9,000 | 26,500 | | Net Income | 3,000 | 10,500 |
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*Previous year result of April 1, 2000 through March 31, 2001
Positive signs in the company thus far in 2002 support Tomen's business projection. For example, SMI has been recovering its profitability for styrene monomer sales, enjoying a recovery in demand and market price in Asian countries. SMI has strengthened its competitiveness through a reduction in production costs and by increasing its capacity in 2002. At the same time, Tomen Electronics Corp. continues its steady growth as the world semiconductor market recovers.
Mr. Morihiko Tashiro, president of Tomen, said, " Despite a weak global economy that forced us to lower expectations, we made steady progress increasing the prospect for future profitability during the past fiscal year." He continued , "The year 2002 is the final year of our renovation plan and we are making a concerted effort to achieve its goals. I consider this to be the basis for Tomen's growth and steps toward further progress have already begun."
In the fiscal 2001, Tomen took aggressive steps to grow the company, consistent with the process outlined in the renovation plan.
For Example, In April 2001, Tomen launched Arysta LifeScience Corp., which integrated Tomen and Nichimen's agrochemical, pharmaceutical and veterinary medicine businesses. The new company, consisting of 59 companies worldwide, aims to expand its sales to 150 billion yen and its ordinary profit to 17 billion yen at the year ending March 2007. In January 2002, Arysta LifeScience invested in purchasing of new agrochemical business rights from major European agrochemical companies. These purchases has strengthened Arysta's product portfolio and to expand the marketing ability of its distribution companies.
In September 2001, Tomen spun off part of its Power & Utility Project Division, which operates its clean energy power generation business, including its worldwide wind power projects. On November 1, 2001, Tomen transferred it to a wholly owned subsidiary, Tomen Power Holdings Corp. The new company aims to enhance its competitiveness in the industry and plans to invite the participation of strategic partners in the near future.
In 2002, Tomen won a series of overseas projects. In February 2002, the consortium of Tomen and Mitsubishi Heavy Industries, Ltd. (MHI) signed a contract worth approximately 4.5 billion yen with N.C. Maritime Ports Administration Constantza S.A. of Romania to supply cargo-handling equipment for a container terminal project. In March 2002, Tomen and MHI also received an order valued at approximately US$109 million from Cairo Electricity Production Company to supply gas turbine generators to build the Cairo North Power Station, a 750MW combined cycle project. The turnkey basis contract will be completed in June 2004.
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