Asahi Kasei Announces Consolidated Full Year Results; Net Sales Rise 8.4%, Net Income Rises 15%.Tokyo, Japan, May 8, 2007 - (JCN JCN Japan Corporate News JCN Journal of Cognitive Neuroscience JCN Journal of Cardiovascular Nursing JCN Journal of Christian Nursing JCN Job Control Number JCN Journal of Child Neurology JCN joint communications network (US DoD) Newswire) - Asahi Kasei Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : 3407; ADR ADR - Astra Digital Radio : AHKSY) has announced consolidated results for the full year ending March 31, 2007. Consolidated net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight grew by JPY JPY In currencies, this is the abbreviation for the Japanese Yen. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 125.2 billion from a year ago to JPY 1,623.8 billion, an 8.4% increase. Sales growth was greatest in chemicals operations, with product prices rising to compensate for increased feedstock feed·stock n. Raw material required for an industrial process. Noun 1. feedstock - the raw material that is required for some industrial process raw material, staple - material suitable for manufacture or use or finishing costs. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. grew by JPY 19.1 billion to JPY 127.8 billion, a 17.5% increase. Operating profit growth was greatest in chemicals operations, with strong overseas market conditions, pharmaceuticals operations, with significant licensing income, and in electronics operations, with strong demand in consumer electronics applications. Ordinary profit grew by JPY 22.3 billion to JPY 126.5 billion, a 21.4% increase. Net income grew by JPY 8.9 billion to JPY 68.6 billion, a 14.9% increase. I. Summary of Consolidated Results for the Year Ended March 31, 2007
(millions of yen, unless otherwise specified)
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1. Operating results (% change from previous year in brackets)
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Fiscal year ended March 2007 2006
Net sales 1,623,791 [+8.4%] 1,498,620 [+8.8%]
Operating profit 127,801 [+17.5%] 108,726 [-6.1%]
Ordinary profit 126,507 [+21.4%] 104,166 [-7.7%]
Net income 68,575 [+14.9%] 59,668 [+5.7%]
Net income per share(y) 49.00 42.46
Diluted net income
per share (y) - -
Net income /
shareholders equity 11.1% 10.8%
Ordinary profit /
total assets 8.9% 7.9%
Operating profit /
net sales 7.9% 7.3%
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* Equity in profit of unconsolidated subsidiaries and affiliates:
JPY 2,647 million; during previous fiscal year, JPY 536 million.
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2. Financial position
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At fiscalyear-end, March 2007 2006
Total assets 1,459,922 1,376,044
Net assets 653,510 594,211
Net worth/total assets 44.2% 43.2%
Net worth per share(y) 461.50 424.34
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* Net assets at end of March 2006 does not include minority
interests. Net worth at end of March 2006 is the same as
shareholders' equity. Net worth at end of March 2007 comprises
shareholders' equity and valuation, translation adjustment & others.
Shareholders' equity as of March 2007 is JPY 645,655 million.
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3. Cash flows
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Fiscal year ended March 2007 2006
Cash flows from
operating activities 128,432 108,620
Cash flows from
investing activities (81,347) (60,373)
Cash flows from
financing activities (36,025) (30,881)
Cash and cash equivalents
at end of period 101,719 86,390
Net decrease in cash and
cash equivalents 11,703 17,792
Cash and cash equivalents
at beginning of year 86,390 68,456
Cash and cash equivalents
at end of year 101,719 86,390
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Please download the Asahi Kasei full year financial summary at http://www.asahi-kasei.co.jp/asahi/en/ir/summary/March2007.pdf II. Results by Operating Segment Chemicals Sales for the segment grew by JPY 92.2 billion to JPY 752.6 billion, a 14.0% increase. Operating profit grew by JPY 11.5 billion to JPY 52.0 billion, a 28.3% increase. Sales and operating profit in volume products, comprising chemicals/derivative products and polymer products, increased. Product price increases and strong overseas demand helped to overcome higher feedstock costs. In chemicals and derivative products, operating profit increased with strong overseas demand for acrylonitrile acrylonitrile /ac·ry·lo·ni·trile/ (ak?ri-lo-ni´tril) a colorless halogenated hydrocarbon used in the making of plastics and as a pesticide; its vapors are irritant to the respiratory tract and eyes, may cause systemic poisoning, and are and styrene sty·rene n. A colorless oily liquid from which polystyrenes, plastics, and synthetic rubber are produced. Also called vinylbenzene. , and with a sharp rise in the market price of adipic acid a·dip·ic acid n. A white crystalline dicarboxylic acid, C6H11O4, that is derived from oxidation of various fats, slightly soluble in water and soluble in alcohol and acetone, and used especially in the manufacture of due to a tight market balance. In polymer products, profitability of Leona(TM) nylon 66 resin and filament filament, in astronomy: see chromosphere. increased. Sales and operating profit in specialty products grew with increased shipments of Hipore(TM) Li-ion rechargeable battery A rechargeable battery, also known as a storage battery, is a group of two or more secondary cells. These batteries can be restored to full charge by the application of electrical energy. separators following plant expansion, export of membrane-process chlor-alkali electrolyzers to China, and increased shipments of ion-exchange membranes for chlor-alkali. Homes Sales for the segment grew by JPY 1.2 billion to JPY 405.7 billion, a 0.3% increase. Operating profit decreased by JPY 0.7 billion to JPY 27.5 billion, a 2.5% decline. Unit prices of order-built homes increased, but the number of deliveries of both order-built homes and condominiums declined, and sales and operating profit in housing operations decreased. Marketing efforts for order-built homes were focused on eliciting demand for rebuilding, but new orders worth JPY 303.4 billion received during the period were JPY 10.0 billion less than a year ago. Sales and operating profit in housing-related operations increased. Real estate operations had rising income from rentals. Remodeling remodeling /re·mod·el·ing/ (re-mod´el-ing) reorganization or renovation of an old structure. bone remodeling operations also grew. Pharma Sales for the segment decreased by JPY 1.4 billion to JPY 104.5 billion, a 1.3% decline. Operating profit grew by JPY 2.8 billion to JPY 13.9 billion, a 25.5% increase. Sales in pharmaceuticals operations decreased with reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. price cuts and decreased shipments of pharmaceutical intermediates. Operating profit grew with licensing income for fasudil hydrochloride hydrochloride /hy·dro·chlo·ride/ (-klor´id) a salt of hydrochloric acid. hy·dro·chlo·ride n. A compound resulting from the reaction of hydrochloric acid with an organic base. rho-kinase inhibitor inhibitor /in·hib·i·tor/ (in-hib´i-tor) 1. any substance that interferes with a chemical reaction, growth, or other biologic activity. 2. . Sales and operating profit in devices grew with increased shipments of APS(TM) polysulfone-membrane artificial kidneys artificial kidney: see kidney, artificial. and Planova(TM) virus removal filters, and with measures to reduce operating costs operating costs npl → gastos mpl operacionales . Fibers Sales for the segment grew by JPY 16.9 billion to JPY 106.6 billion, an 18.9% increase. Operating profit grew by JPY 0.1 billion to JPY 4.2 billion, a 3.4% increase. Sales of elastic polyurethane polyurethane Any of a class of very versatile polymers that are made into flexible and rigid foams, fibres, elastomers (elastic polymers), surface coatings, and adhesives. filament grew with increased shipments of Roica(TM), improved market conditions, and the inclusion of the Dorlastan(TM) business acquired from Lanxess, but operating profit decreased as the Dorlastan(TM) business operated at a loss. Roica(TM) production equipment is being installed at the Dorlastan(TM) plants in the US and Europe, and the business is forecast to become profitable in fiscal year 2007. Sales and operating profit in Bemberg(TM) cupro grew with increased exports. Nonwovens operations were impacted by the effect of elevated feedstock costs, but sales and operating profit grew with increased shipments of Lamous(TM) artificial suede in car seat applications. Electronics Materials and Devices Sales for the segment grew by JPY 9.2 billion to JPY 112.1 billion, a 9.0% increase. Operating profit grew by JPY 3.3 billion to JPY 22.6 billion, a 17.0% increase. Sales and operating profit in electronic devices grew as shipments of LSIs and magnetic sensors increased with strong demand in cell phone and home electronics applications. Sales and operating profit in electronic materials grew as shipments of Sunfort(TM) photosensitive A material that changes when exposed to light. See photoelectric. dry film resist increased following a large expansion of production capacity and shipments of ultra-thin grades of glass fabric for printed circuit boards increased. Construction Materials Sales for the segment grew by JPY 4.3 billion to JPY 60.8 billion, a 7.6% increase. Operating profit grew by JPY 1.2 billion to JPY 5.0 billion, a 32.0% increase. Building materials Building materials used in the construction industry to create . These categories of materials and products are used by and construction project managers to specify the materials and methods used for . and housing materials operations were affected by high feedstock and fuel costs for production of Hebel(TM) autoclaved lightweight concrete (ALC (Assembly Language Coding) A generic term for IBM mainframe assembly languages. 1. ALC - Assembly Language Compiler. 2. ALC - Airline Line Control. ) panels, but sales and operating profit grew with measures to reduce operating costs and higher sales prices. Sales and operating profit in foundation systems grew with an expansion of new applications for Eazet(TM) and ATT ATT ammonia tolerance test. Column(TM) piles for small-scale construction. Sales and operating profit in insulation materials grew with a successful expansion of the user base for Neoma(TM) high-performance phenolic phe·no·lic adj. Of, relating to, containing, or derived from phenol. n. Any of various synthetic thermosetting resins, obtained by the reaction of phenols with simple aldehydes and used as adhesives. foam panels resulting in increased shipments. Life & Living Sales for the segment grew by JPY 0.6 billion to JPY 52.6 billion, a 1.2% increase. Operating profit decreased by JPY 0.2 billion to JPY 4.6 billion, a 5.0% decline. Sales of home-use products grew with increased shipments of Saran Wrap Noun 1. Saran Wrap - a thin plastic film made of saran (trade name Saran Wrap) that sticks to itself; used for wrapping food cling film, clingfilm plastic wrap - wrapping consisting of a very thin transparent sheet of plastic (TM) cling film Noun 1. cling film - a thin plastic film made of saran (trade name Saran Wrap) that sticks to itself; used for wrapping food clingfilm, Saran Wrap plastic wrap - wrapping consisting of a very thin transparent sheet of plastic and Saran(TM) fiber, but operating profit decreased with higher feedstock and packaging costs and increased advertising expenses. Sales of packaging materials were on par with a year ago, but operating profit decreased as a result of the impact of elevated feedstock costs. Services, Engineering and Others Sales for the segment grew by JPY 2.1 billion to JPY 28.9 billion, a 7.7% increase. Operating profit grew by JPY 0.6 billion to JPY 3.9 billion, a 17.4% increase. Sales and operating profit in engineering operations grew with strong business in overseas plant engineering. Sales of personnel staffing and placement operations increased with growing demand, and operating profit was on par with a year ago. III. Forecast for Fiscal Year Ending March 31, 2007 ------------------------------------------------------------------- 1. Consolidated forecast results* ------------------------------------------------------------------- (millions yen) semiannual full year Net sales 802,000 1,682,000 Ordinary profit 50,000 126,000 Net income 49,500 123,500 Net income per share (yen) 18.23 50.03 ------------------------------------------------------------------- *Performance forecasts are based on the best information available at this time, but actual results may diverge from these forecasts due to a variety of factors which cannot be foreseen. IV. Cash dividends ----------------------------------------------------------------- FY ending March 2006 2007 2008(est) Interim (y) 5.00 5.00 6.00 Year-end (y) 5.00 7.00 7.00 Total annual (y) 10.00 12.00 13.00 Dividends payment amount(mil y) 14,000 16,793 -- Payout ratio (consolidated) 23.6% 24.5% 26.0% Cash dividends / net assets (consolidated) 2.5% 2.7% -- ----------------------------------------------------------------- About Asahi Kasei Corp. Asahi Kasei provides innovative solutions based in chemistry and materials science materials science Study of the properties of solid materials and how those properties are determined by the material's composition and structure, both macroscopic and microscopic. to a diverse range of markets including fibers, chemicals, consumer products, housing, construction, electronics, and health care. With consolidated sales of some US$10 billion, it is a Fortune Global 500 enterprise with twenty-five thousand employees and one hundred consolidated subsidiaries. The operating configuration comprises seven core operating companies operating company A business that engages in transactions with outsiders. as autonomous business units specialized in separate business fields. Asahi Kasei Corporation, as the parent company, functions as a holding company for group operations. An Independent Businesses Group provides group services. For more information, please visit www.asahi-kasei.co.jp. Source: Asahi Kasei Corp. Contact: Asahi Kasei Corporation Corporate Communications Phone: +81-3-3507-2060 Fax: +81-3-3507-2495 Japan Corporate News Network. All rights reserved. |
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