Taiyo Nippon Sanso Corporation (TNSC) has released its fiscal 2016 financial results after all companies and associated subsidiaries under the TNSC umbrella changed their fiscal year end from 31st December to 31st March, resulting in a 15-month transitional accounting period.

As a result, the Tier One player’s total consolidated net sales in fiscal year 2016 showed double-digit growth and rose by 14.7% to YEN 641.5bn ($6.17bn). Cost of sales also demonstrated strong growth increasing by 11% to YEN 416.1bn ($4bn) and, as a result, operating income advanced 22.8% to YEN 43.4bn ($417m).

Total assets as of 31st March 2016 amounted to YEN 783.2bn ($7.5bn), a slight increase of 0.1% compared to the previous fiscal year, with TNSC affirming, “The appreciation of the yen, which was YEN 7.87 ($0.07) higher against the US dollar on 31st March 2016, than on the same day a year earlier, had a negative impact of approximately YEN 24.3bn ($233.6m).”


Its industrial gas sales across Japan took a hit this fiscal year despite demand remaining high from the shipbuilding and transportation equipment industries, which the company attributes to the decline in demand from the steel and chemical industries. However, TNSC saw gas equipment sales rise substantially throughout the country, with results proving to be particularly strong for hydrogen (H2) stations as Japan continues to lead the way in the drive towards a H2 economy.

But the 10% increase in operating profit to YEN 27.5bn ($264.4m) was not enough to save overall sales slumping in this segment, which declined by 3.6% to YEN 332.2bn ($3.2bn).

In contrast, sales of industrial gases in the US soared by 44% compared to the previous fiscal year, reaching YEN 188.6bn ($1.8bn). Operating income also advanced 17.6% to YEN 6.8bn ($65.4m). The company said in a statement, “Foreign exchange translation gains and the inclusion of 15 months of results for MATHESON Tri-Gas, owing to a change in the company’s fiscal year, also pushed sales up significantly above the fiscal year 2015 level.”

The Japanese corporation’s sales in Asia and Oceania also sky-rocketed by 50.3%, largely thanks to the inclusion of its Singaporean subsidiary Leeden National Oxygen’s 15-month financials. As a result, sales across the regions totalled YEN 93.2bn ($896m), with operating income also up by 80.7% to YEN 4.5bn ($43.3m). A further statement clarified that, “Sales in the area of electronics-related products rose substantially, underpinned by persistently strong demand in Taiwan, China and South Korea, which pushed up sales of electronics materials gases and gas equipment.”

Future outlook

In terms of future outlook and according to TNSC’s current medium-term business plan, Ortus Stage 1, the Japanese firm anticipates an increase in cash of YEN 180bn ($1.7bn) generated by operating activities over the next three years.

The company signified, “Going forward, we will continue to make decisive investments in growth while continuing to prioritise an abundant cash flow from operating activities and a stable financial base.”