Performance trends for Takiron SEA＜4215＞.
2. Performance trends by segment.
Performance trends by segment, the architectural materials business segment had revenue of 44.402 billion yen (down 0.9% from the previous period), segment profit of 2.983 billion yen (up 20.1% from the previous period), the environmental materials business segment had revenue of 54.039 billion yen (down 1.4% from the previous period), segment profit of 1.884 billion yen (up 518.6% from the previous period), the high-function material business segment had revenue of 20.480 billion yen (down 9.9% from the previous period), segment profit of 1.731 billion yen (down 33.5% from the previous period), the functional film business segment had revenue of 17.820 billion yen (down 20.6% from the previous period), segment loss of 304 million yen (compared to operating profit of 126 million yen in the previous period).
The residential and construction material business of the architectural material business segment saw a decrease in revenue as a whole due to a decline in sales of housing and non-housing properties, due to influences such as reduction of investment in equipment for the animal husbandry industry due to the decrease in construction of new housing units and the rising cost of materials and fodder prices, even though there were effects such as an increase in revenue due to price increases of products along with effects due to the expansion of signage demand due to factors such as the rise in inbound services. Despite sending out more products, the profit decreased due to a decrease in product prices and an increase in raw material prices. On the other hand, the flooring and construction materials business secured increased revenue as the flooring material product price was revised along with the product price increase effect and shipping cost improvements, and due to the solid performance of Australia in addition to Europe which has had a slow recovery and North America gradually improving along with a good performance in the floor material for the domestic condominium renovation market. The profit increased significantly due to the effect of the increase in revenue, the revised product price of flooring materials, the shipping cost improvement of construction materials, and fixed cost reduction through the rationalization of factory production systems.
The fertilizer business of the environmental materials business segment suffered a decrease in revenue as the restraint of the producers' buying due to the low fertilizer market and soaring prices of various agricultural materials continued, along with the low progress of shipments of house-related materials. However, the profit skyrocketed due to the decrease in manufacturing costs and the improvement in earnings of domestic group companies. The infrastructure material business improved its revenue due to the good progress of the rotation formed product and civil engineering sheet and shield on top of the recovery of demand for Howell tubes and succeeding in achieving a profit due to the revision of product prices and suppression of sales and distribution expenses.
The high-function material business segment (high-function material business) suffered a decrease in revenue due to the continued restraint of the semiconductor manufacturer's equipment investment as well as low progress of industrial plates for manufacturing equipment and EMPRA material, which were affected by the adjustment of inventory adjustment throughout the year for micro-motors for daily necessities and the like. The profit also decreased as a result of a decrease in sales of industrial plates and a decrease in sales of micro-motors due to inventory adjustment by major clients.
The functional film business segment (packaging material business), in which shrink film, which accounts for the majority of the market, showed a large decline due to a prolonged low demand for production and sales in regions including South America due to the extended inventory adjustment of distribution, as well as due to sluggishness in both domestic and overseas zipper tapes, suffered a decrease in revenue. Particularly in North America, which is the prominent market for shrink film, the poor sales continued for an extended period of time, resulting in operating deficit (a decrease of 430 million yen from the previous period).
(Author: FISCO guest analyst Nobumitsu Miyata)