Taiyo Nippon Sanso Corporation, TNSC has released its fiscal report for the first three quarters of 2012, certain sectors have seen sales depreciate.
For the period that begun 1st April 2011 and ended 31st December 2011, TNSC’s consolidated net sales fell to ¥348,464m which constituted a 1.9% decline on an annual basis. Operating income also declined 14.9% to ¥22,637m, while ordinary income depreciated 14.8% to ¥22,292m.
Sales of mainstay products including oxygen, nitrogen and argon were all slightly down year on year.
Nevertheless net income climbed 12% compared with the corresponding period in 2011, to ¥16,910m. According to TNSC this appreciation reflected a gain on transfer of the SDS and VAC businesses in the United States.
Encouragingly for TNSC’s industrial gas division, demand from steelmaking and chemicals witnessed gradual recovery following an initial sharp drop at the beginning of the period due to the earthquake. Nevertheless, in a press statement alongside the report, TNSC noted a decline in some sectors: “Sales of mainstay products including oxygen, nitrogen and argon were all slightly down year on year, due to the decline in export activity resulting from the sharp and rapid appreciation in the value of the yen.”
Sales of cutting and welding equipment increased on a yearly basis in Japan. So too did overseas sales. However, sales of ASU’s declined “substantially” owing, according to TNSC, to a slump in large-scale capital investment demands. Consequently, sales of Industrial Gases Business increased 0.4% year on year to ¥215,633m, while operating income decreased 4.7% to ¥16,811m.
In light of the recent fiscal quarter results, TNSC has revised its business performance forecasts for fiscal year 2012. The revision applies to the annual period ending 31st March 2012.
The previous forecast of net sales has been lowered 3.4% to ¥476,000m, similarly the operating income forecast has reduced 14.3% to ¥30,000m, while the net income forecast has declined to ¥19,500m.