Taiyo Nippon Sanso Corporation (TNSC) has experienced something of a busy summer this year, capped by a mixed business performance for the first quarter of fiscal 2008 and a rise in the sales for the company’s gas business.
TNSC this summer acquired silane gas refilling company Yangzhou Zhong Yuan Semiconductor Gases Co. Ltd, from US Gas Standards Inc. and began operating the entity as a new company under a new name in June.
This was followed by an award for the company’s Philippine subsidiary INGASCO Inc, honoured as a recipient of the 2008 Supplier Appreciation Award conferred by Texas Instruments Philippines Inc. (TIPI), the local subsidiary of Texas Instruments Inc. Texas Instruments.
In August, TNSC revealed its Q1 2008 results and noted a positive performance despite the at times tumultuous financial situation the world appears to find itself in.
Yangzhou Zhong Yuan Semiconductor Gases Co. Ltd, located within the Qingshan Town Industrial Park, Yizheng City of Jiangsu Province in China, began operation in 2004. It acquired authorisation in its local market for the refilling and sale of silane gas ahead of the gas majors, and sales have been showing a steady upward trend.
In the future, the new company now under the control of TNSC is expected to serve as a new strategic base in East Asia for semiconductor-related business, particularly in China. TNSC plans to increase the lineup of products, focusing primarily on silane gas, and will continue to expand business operations.
INGASCO Inc, a subsidiary of TNSC providing liquid nitrogen and other gas products in the Philippines, was a recipient of the 2008 Supplier Appreciation Award and honoured for its exceptional service.
TIPI is a world-leading manufacturer and developer of semiconductors and gives awards annually to those suppliers who have exhibited exceptional service and commitment to the company.
In fiscal 2007, TIPI awarded INGASCO the top supplier award for the fourth consecutive year, citing the Philippine supplier’s cutting-edge technologies which meet the CETRAQ (Cost, Environmental responsibility, Technical responsiveness, Assurance of supply, and Quality) standard established by TIPI, as well as the high level of its services and its outstanding customer support.
INGASCO Executive Vice President Raymond M. Chu accepted a commemorative plaque from Boyet Dioquino, Director responsible for Plant Operations at TIPI, at an award ceremony held at Camp John Hay in Baguio City this year.
In his acceptance speech, Executive Vice President Chu said, “This award is a wonderful recognition of our efforts to create a system for ensuring the steady supply of high-quality products and services that meet customers’ needs.”
Constructive Q1 2008
During the first quarter ended 30th June of fiscal 2008, the prospects for the Japanese economy became increasingly cloudy against the backdrop of a slowdown in global economic activity, as a result of many global financial concerns.
The US economy meanwhile, continued to grow at a moderate pace in spite of the financial sector crisis, thanks to a firm undertone in consumer spending and good growth in exports, fuelled by the weakening of the dollar’s exchange rate.
In the principal industrial sector in which the Taiyo Nippon Sanso Group is engaged, demand for industrial gases by customers in the electronics sector remained firm, but the high market prices of raw materials, including naphtha, acted as a dampener on demand by the steel and chemicals industries – the company pointed out.
Under such circumstances, the group posted mixed business results for the first quarter of fiscal 2008, with sales of ¥124.8m rising 4.6% over the same period of the previous fiscal term and operating income of ¥9.152m sliding 5.0% year-on-year.
Recurring profit of ¥9.4m was down 3.7% and net income of ¥5.1m showed a decrease 1.1%.
Gregarious gases business
In the Gas Business demand remained firm from the group’s principal customer industries in Japan and as a result, sales of mainline gases in the Japanese market followed a favorable trend.
Specialty gases posted sales increases both in Japan and overseas, accredited by TNSC to brisk shipments to users in the electronics sector.
As a result, sales of the Gas Business rose 8.1% year-on-year to reach ¥87.114m, while operating income fell 10.8% to ¥7.228m.
Total sales in the Japanese market reached ¥97.3m, up 5.6%, while operating income totaled ¥7.4m up 3.9%.