According to The Gas Review, Air Water’s sales revenue increased by 10.8% and the operating income also increased by 13.6% comparing with the same term of the previous year.
The company achieved a record-high performance in the second quarter term-end closing account.
Each business division improved its earning power by the revision of prices, and there was also a contribution to profitability by the woody biomass power generating business which started in Yamaguchi Prefecture from July last year. The new effect of consolidation by M&A also worked to push up the profitability.
Out of the increased revenue of ¥37.6bn, there were M&A effects of the new consolidation amounting to about ¥23.9bn brought by 24 companies.
In terms of segments, the sales revenue of the industrial gas related business increased by 12.2% with an operating income up 28.3% comparing to the previous same period.
There was a contribution of the increased volume of onsite gas supplies and also the new consolidation of the industrial gas business in East India which was acquired from Praxair.
It is forecasted as President Kiyoshi Shirai saying that AWI’s market share of industrial gases will become 12% in India and the business will be done mainly with Ellenbarrie located in the eastern area to carry out the business as planned.
The medical business achieved a sales increase by 14% with an operating income up 5.5%. There was a contribution of the new consolidation in connection with the newly consigned SPD business and the medical equipment distributor acquired last year. The sales of medical equipment like HBO also increased at a good pace.
As for the agricultural and food business, the business stayed flat in sales with an increase by 0.6% with an operating income up 22.3% as the consigned business of beverage decreased due to the cold summer and the logistic and personnel costs rose.
The sales of chemical business decreased by 5.2% with an operating loss of ¥68m. It was attributed to the decrease in the sales of high-functional products for industrial robots and the substantial in the sales of naphthoquinone in Kawasaki Kasei Chemicals.
The energy-related segment saw an increase in the sales by 2.8% with an operating income up 27.1% thanks to the increased volume of LPG for consumer use although the selling price of LPG declined due to the drop of CP price.
In the logistics segment, the sales increased by 7.3% with an operating income up 10.6% as the handling volume of construction materials and agricultural feed increased mainly in Hokkaido and also the newly consigned delivery business for convenience stores.
In the miscellaneous fields, the sales revenues increased with the newly consolidated business of CO2 gas equipment by TOMCO acquired in 2018, the cold transportation equipment by Taylor Wharton America, the uninterruptible power system by Power Partners and the power generating business in Yamaguchi Prefecture.
There is no change in the forecast of the business performance through the year, and it is expected that the sales revenue will be increased by 11.8% amounting to ¥830bn with an operating income of ¥48bn up to 12.2% and a net profile for the term up 4.1% amounting to ¥30bn.
The Gas Review, issue no. 477