First Quarter Results for the Year ending December 31, 2017
May 9, 2017
Tokai Carbon Co., Ltd.
Table of Contents
Ⅰ. First Quarter, FY 2017 Financial Summary P3
Ⅱ. Earnings Forecast for FY 2017 P16
Ⅰ. First Quarter, FY 2017
Financial Summary
Topics 4
First Quarter, FY 2017 (January-March 2017)
Business Environment
Carbon Black: Robust order inquiries from tire manufacturers led to growth in sales volume as the offensive drive by Chinese carbon black manufactures to push exports weakened. The price of oil used as the raw material was increased as crude oil prices rose and the company raised carbon black sales prices in line with that.
Graphite Electrodes: The structural imbalance between supply and demand caused sales prices to decline from the first quarter of last year, despite recent signs of a turnaround in market prices. Efforts to reduce fixed costs during that period helped somewhat.
Fine Carbon: The imbalance between supply and demand persisted, but it was apparent that the decline in market prices had bottomed out with signs of a rebound in the solar power industry. The initial benefits from the business restructuring last year began to emerge from the first quarter of 2017.
Operating Trends
Sales: Sales rose 6.5% YoY due to volume growth in carbon black and graphite electrodes sold, among other factors.
Operating income: Operating income rose 219.3% YoY. This was due to the results achieved in reducing fixed costs and the fact that the one-time loss recorded during the first quarter of last fiscal year was not a factor in the current quarter, in addition to growth in volume sales.
Revision of Earnings Forecast (on May 9, 2017)
The previous forecasts (February 9) for net sales and operating income were revised upward. Carbon black growth drove the improvement.
Tokai Carbon Co. Ltd. published this content on 24 May 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 May 2017 08:39:10 UTC.
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Tokai Carbon Co., Ltd. is one of the Japanese leaders in manufacturing and marketing of coal and graphite products. The group is also producing industrial furnaces. Net sales break down by family of products as follows:
- coal and graphite products (69.6%): coal, graphite electrodes, special graphite and friction materials primarily for industrial, electronic, energy, automotive and mechanic applications;
- cathodes for smelting aluminum and furnace linings (18.1%);
- industrial furnaces and heating products (6.9%): for thermal processing of ceramic products, electronic components, metals, glasses, etc.;
- other (5.4%).
Net sales break down geographically as follows: Japan (24.6%), Asia (26.7%), the United States (26.5%), Europe (11.6%) and other (10.6%).
TOKAI CARBON CO., LTD. 
