Tomen's First Half Fiscal 2002 Results and Projection for Growth in FY2002
2002-11-14
Tomen Corporation announced today its interim results for the first half of fiscalyear 2002 (April 1, 2002 through September 30, 2002). In the midst of the challengesposed by a global recession, the results confirm Tomen's steady progress in thecompletion of Tomen renovation plan, a three-year restructuring plan ending March31, 2003.
[Consolidated Result of fiscal 2002 Interim, April 1, 2001 through September 30, 2002]
Millions of Yen |
| | Result | Previous year* | Difference (%) | | Total Trading Transaction | 1,083,860 | 1,273,909 | -190,049 (-14.9 %) | | Ordinary Profit | 6,519 | 11,023 | -4,504 (-40.9 %) | | Net Income | 2,251 | 4,156 | -1,905 (-45.8 %) |
|
*Previous year result of April 1, 2001 through September 30, 2001
Total trading transaction was 1,084 billion yen, compared with total trading transaction of 1,274 billion yen for the same period of the previous year. The decline reflects stagnation in all business fields except machinery business and the decline in crude oil sales due to OPEC's decision to reduce their oil supply during the period.
The ordinary profit was 6.5 billion yen, compared with an ordinary profit of 11.0 billion yen for the previous year. The drop in the ordinary profit resulted from the decline in total trading transaction. Net income was 2.3 billion yen, compared with net income of 4.2 billion yen in the previous year.
Tomen also announced its business projection for the fiscal year ending March 31, 2003, which projects total trading profit of 2,200 billion yen, ordinary profit of 23.5 billion yen and net income of 11.5 billion yen.
[Consolidated Business Projection of fiscal 2002 ending March 31, 2003]
Millions of Yen |
| | Projection | Previous year* | Difference | | Total Trading Transaction | 2,200,000 | 2,384,848 | -184,848 | | Ordinary Profit | 23,500 | 23,174 | +326 | | Net Income | 11,500 | 4,710 | +6,790 |
|
*Previous year result of April 1, 2001 through March 31, 2002
Positive signs in the company thus far in 2002 support Tomen's business projection. For example, Styrindo Mono Indonesia (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, group companies in the electronics business continued their steady growth. Tomen Electronics Corp. (7558) made a record recovery in sales and profit amid the sluggish world semiconductor market. Tomen Devices Corp. (2737), a joint venture with Samsung Electronics, and listed on the JASDAQ market in June 2002, announced its upward revisions of sales and profit estimates for the first half of the fiscal year.
Mr. Morihiko Tashiro, president of Tomen, said, "Tomen has fared well in these challenging times. I believe our strategies to weather market conditions have succeeded and I am confident the company is well positioned for future growth. We remain on track for completing the renovation plan next year."
During the first half of fiscal 2002, Tomen took aggressive steps to grow the company, consistent with the process outlined in the renovation plan.
In June 2002, Tomen and the Tokyo Electric Power Company, (TEPCO) formed the partnership in wind power business. In September 2002, TEPCO purchased a half of Tomen's holding shares in Tomen Power Holdings Corporation (TPHC), the world's leading wind power developer. At the same time, TPHC changed its name to "Eurus Energy Holdings Corporation" (Eurus Energy). The new partnership in Eurus Energy consists of Tomen Corp (50%) and TEPCO (50%). Combining TEPCO's technological expertise as Japan's largest utility with Tomen's leadership position in the world wind power market will make rapid expansion of the new venture possible.
In the first half of 2002, Eurus Energy announced several new projects. It plans to build a new wind power generation plant in Illinois, U.S.A. It will have the total output capacity of 50,000 kilowatt and will be completed by the end of 2003. The plant will sell the electricity to the local power company for 20 years. In Japan, Eurus Energy plans to build new wind power plants in four locations, including Aomori, Iwate, Akita and Kagoshima prefectures by the end of 2004. After completion of these new plants, Eurus Energy will operate 190,000 kilowatt of the total wind power capacity in Japan. It will hold approximately 30% share in the total wind power capacity in Japan.
In September 2002, Arysta LifeScience Corp. announced that it plans to increase its capital by up to 36 yen billion over the next 3 to 4 years to enhance its expansion in the global agrochemical business. Olympus Capital Holdings Asia, a leading Asian private equity firm, agreed to the investment in Arysta and made 84 yen billion initial investment. The new partnership consists of Tomen Group (51.9%), Nichimen (36.5%), Toyota Tsusho (1.8%), UFJ Bank (0.9%) and Olympus (8.7%). The new investment will be used to accelerate Arysta's global penetration via a continued program of acquisition in agrochemicals.
In September 2002, the consortium of Tomen Corporation and Kawasaki Heavy Industries, Ltd. received an order valued at approximately 32 yen billion from Iran's Kermanshah Petrochemical Industries Company (KPIC) to build an ammonia and urea fertilizer plant in Iran. The plant will have an annual production capacity of 396,000 tons per year (1,200 tons per day) of ammonia and 660,000 tons per year (2,000 tons per day) of urea. The construction of the plant will be completed in 2005.
Consolidated Financial Statements
For the Six-Month Period Ended September 30, 2002
(November 14, 2002)
Tomen Corporation
| Listed Stock Exchange: | The first sections of Tokyo, Osaka, and Nagoya Stock Exchange |
| Headquarters: | Osaka |
| Securities Code: | No.8003 |
| Contact Information: | Koichi Koiwai, General Manager, Corporate Communications Department
Tel.(03)5288-2090 |
| Board of Directors' Meeting: | November 14, 2002 |
| Adoption of accounting principles generally accepted in the United States of America: NA |
1.Consolidated Business Results of Fiscal 2002 Interim
[April 1, 2002 through September 30, 2002]
| (1) Results of Operations | (Amount less than one million omitted) |
| | Total Trading
Transaction | Operating
Income | Ordinary
Profit | | | Millions of Yen | % | Millions of Yen | % | Millions of Yen | % | September 30,
2002 | 1,083,860 | -14.9 | 10,910 | -20.7 | 6,519 | -40.9 | September 30,
2001 | 1,273,909 | 4.0 | 13,760 | -18.0 | 11,023 | -11.5 | | March 31,2002 | 2,384,848 | | 25,197 | | 23,174 | |
|
| | Net Income | EPS | EPS (After Dilution) |
| | Millions of Yen | % | Yen | Yen |
September 30,
2002 | 2,251 | -45.8 | 3.52 | - |
September 30,
2001 | 4,156 | 7.4 | 6.52 | - |
| March 31, 2002 | 4,710 | - | 7.39 | - |
Note:
| 1. | Equity in earnings of unconsolidated subsidiaries and affiliates: |
| September 30, 2002: 2,283 million yen |
| September 30, 2001: 2,177 million yen |
| | March 31, 2002: 4,871 million yen |
|
| 2. | Average number of shares during the period (Consolidated): |
| September 30, 2002: 637,429,409 shares |
| September 30, 2001: 637,633,932 shares |
| | March 31, 2002: 637,608,139 shares |
|
| 3. | Changes in accounting policies during the period: NA |
|
| 4. | Percentage figures under total trading transaction, operating income, ordinary profit and net income show changes from the same interim period of the previous fiscal year. |
(2) Financial Position
| | Total Assets | Shareholders' Equity | Shareholders' Equity Ratio | Shareholder's Equity per Share |
| | Millions of Yen | Millions of Yen | % | Yen |
September 30,
2002 | 1,316,996 | 4,934 | 0.4 | 7.74 |
September 30,
2001 | 1,468,005 | 2,176 | 0.1 | 3.41 |
| March 31, 2002 | 1,448,261 | 4,662 | 0.3 | 7.31 |
(3) Cash Flows
| | Cash Flow from Operating Activities | Cash Flow from Investing Activities | Cash Flow from Financing Activities | Cash and Cash Equivalents, End of Period |
| | Millions of Yen | Millions of Yen | Millions of Yen | Millions of Yen |
September 30,
2002 | 11,605 | 26,936 | -39,590 | 133,900 |
September 30,
2001 | 53,627 | 23,508 | -57,797 | 149,581 |
| March 31, 2002 | 71,671 | 26,389 | -86,178 | 140,290 |
(4) Number of Consolidated Subsidiaries and Companies under Equity Method
| Consolidated subsidiaries: | 234 |
| Unconsolidated subsidiaries under Equity Method: | 2 |
| Affiliated companies under Equity Method: | 97 |
(5) Changes in Number of Consolidated Subsidiaries and Companies under Equity Method
| Consolidated subsidiaries | Added: | 7 |
| | Removed: | 30 |
| Equity Method | Added: | 3 |
| | Removed: | 24 |
2.Consolidated Business Projection of Fiscal 2002
[April 1, 2002 through March 31, 2003]
| | Total Trading
Transaction | Ordinary Profit | Net Income |
| | Millions of Yen | Millions of Yen | Millions of Yen |
Fiscal year ending
March 31, 2003 | 2,200,000 | 23,500 | 11,500 |
Reference: Projected EPS for the fiscal year ending March 31, 2003: 18.04 yen
This report contains forward-looking statements, which reflect management's current views with respect to future events and financial performance. Actual results may differ materially from those projected in the forward-looking statements due to factors such as changing economic environment, exchange rate fluctuations, and changes in competitive conditions as well as government regulations and litigation.
Note: Tomen Corporation and its consolidated domestic subsidiaries maintain their accounts and records in accordance with the provisions set forth in the Japanese Commercial Code and the Securities and Exchange Law and in conformity with accounting principles and practices generally accepted in Japan. The above statements are translated into English for the convenience of readers outside Japan.
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