Taiyo Nippon Sanso Corporation (TNSC) has released its financial results for the first three quarters of fiscal year 2015, in which weak sales in Japan were offset by M&A activities in the US and Asian industrial gas industry.

The results cover the period from April to December 2015 and show that sales and profit for the Tier One player were up all round, with sales up by 7.5%, operational profit up by 19.1% and ordinary profit up by 18.1%, with the total net profit up by 32.2%.

But despite the company’s finances flourishing, its industrial gas business as a whole for the North Pacific rim country showed overall sales were down by 4%, amounting to ¥240.7bn ($2.2bn), with operating profit across the sector totalling ¥19.9bn ($183.7m).

The primary reason for this decline in sales was the drop in sales price accompanying the plunge of the import price of liquefied petroleum gas (LPG). Sales of LPG were down by 26.8% compared to the previous year, which accounts for approximately 70% of the drop in sales.

For air separated gas, the plunging trend in sales continued for pipeline supply gas, such as onsite gas for the iron and steel sector. The slump continued into the electronics sector too, attributed to a lack of demand in the liquid crystal display (LCD) market, meaning sales for electronics material gas was down by 6.3% compared to the previous fiscal year.

Despite these slowdowns across Japan’s generic economy, TNSC’s industrial gas business in the US showed sales were up by 21.9%, amounting to ¥116.2bn ($1.1bn), with operating profit up by 27.1%, amounting to ¥4.5bn ($41.5m). It is understood that air separated bulk gases, onsite gas and electronics materials thrived in the States this year, with foreign exchange rate and M&A activity also contributing to the growth.

It’s business in Asia and Oceania also showed positivity, with sales up by 33.5%, amounting to ¥59.3bn ($498m), with operating profit up by 32.3% to total ¥3bn ($28m). Business related to electronics gases maintained good growth throughout Taiwan, China, Korea, Vietnam and the Philippines.

Tnsc q3 financial pie charts

TNSC breakdown of sales

New effects in its consolidated statement appeared after acquiring both API in Thailand in May and Australian company Renegade Gas in July last year. 

Despite positive results overall, a spokesperson from the Pubic Relations department of TNSC, expressed economic concerns, “In both the US and Asia, the business results related to oil entered into the third quarter is showing a decreasing trend and we are not sure if this is because of the effect of the plunge in the price of oil.”