Reflecting a domestic plateaux, Taiyo Nippon Sanso (TNSC) saw steady year-end fiscal results. With this, net income rose on a non-consolidated basis by 28.1% to ¥10,595m, while recurring profit closed at ¥15,899m – an increase of 8.4% on 2009.
Thanks to TNSC’s emphasis on distribution streamlining and other Groupwide cost reductions, operating income fell by 5.5% year on year to ¥27,556m. Recurring income also declined by 3.2% to ¥27,058m, however so too did sales; by 15.8% year on year to ¥224,742.
In response to policies aimed at stimulating economic demand, The Group’s mainline gases - oxygen, nitrogen and argon - underwent a growth in exports. This was particularly evident in industries such as electronics, automotives, and petrochemical products. This surge began in the final quarter of 2009 and the first quarter of the financial year 2010. However, overall sales declined. Similarly, weak domestic demand caused sales of other gases, including carbon dioxide, helium and hydrogen, to fall. Consequently, the Gas Business declined 8.9% year on year to ¥300,451m.
Other sectors which reflected poor domestic demand included sales of welding equipment and materials, as well as sales of air separation plants. As a result, sales for fiscal year ending 31st March 2010 by the Group’s Machinery and Equipment Business decreased by 22.7% on the previous year to ¥113,997m.
Looking towards the forthcoming 2011 financial year, TNSC anticipates an upswing mimetic of the general global recovery. In particular, emerging nations such as China and India are hoped to be particularly lucrative. Therefore, although domestic demand is expected to remain dormant, TNSC’s emphasis on growing industries and markets is hoped to engender increased exports.