Tokai Carbon : First Half, FY2017 Analyst Meeting Material
August 23, 2017 at 02:23 am EDT
Share
First Half, FY 2017 Analyst Meeting Material
First Half Results for the Year ending December 31, 2017
August 9, 2017
Tokai Carbon Co., Ltd.
Table of Contents
First Half, FY 2017 Financial Summary
Earnings Forecast for FY 2017
Progress Report on Mid-Term
Management Plan T-2018
P3 P16 P22
First Half, FY 2017 Financial Summary
Topics 4
First Half, FY 2017 (January-June 2017)
Business Environment
Carbon Black: Order inquiries from tire manufacturers remained at a high level as seen in the first quarter, resulting in growth in sales volume. Unit sales prices also rose as the price of crude oil rose and sales prices were also revised.
Graphite Electrodes: While the structural imbalance between supply and demand will persist, the market saw a temporary shortage of electrodes and Tokai Carbon is also operating at full capacity at present. Customers are already taking steps to secure the electrodes needed for next year, and are also moving up the timing of commercial talks. In the Japanese market, Tokai Carbon announced a price hike of 40,000 yen per ton from April onward, and another 60,000 yen per ton from October onward.
Fine Carbon: The decline in market prices seems to have bottomed out with the trend of recovery in the solar cell and semiconductor markets. Benefits from the business restructuring last year are emerging. A 15% increase in price was announced, in keeping with the increase in raw material prices.
Operating Trends
Sales: Sales rose 9.6% YoY due to growth in volume and an increase in sales prices for carbon
black, among other factors.
Operating income: The substantial growth in operating income resulted from the benefits derived from fixed cost reductions, the lack of one-off expenses posted in the last fiscal year (the provision of allowance for doubtful accounts, a one-time posting of R&D expenses, etc.), and other factors, in addition to the growth in volume sales.
Revision of Earnings Forecast (on July 31, 2017)
The previous forecasts for net sales and operating income (from May 9) were revised upward. Carbon black growth drove the improvement.
Tokai Carbon Co. Ltd. published this content on 23 August 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 23 August 2017 06:22:03 UTC.
Original documenthttp://v3.eir-parts.net/EIR/View.aspx?template=ir_material&sid=78458&code=5301
Public permalinkhttp://www.publicnow.com/view/E7B4CE92F31F423CA1F14C3C56476501A7E22E70
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. 
