Tokai Carbon : Third Quarter, FY2017 Analyst Meeting Material
November 15, 2017 at 06:30 pm EST
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Third Quarter, FY 2017
Analyst Meeting Material
Results for the First Nine Months of the Year ending December 31, 2017
November 2, 2017
Tokai Carbon Co., Ltd.
Table of Contents
Third Quarter, FY 2017 Financial Summary P3
Earnings Forecast for FY 2017 P16
Third Quarter, FY 2017 Financial Summary
Topics 4
Third Quarter, FY 2017 (January-September 2017)
Business Environment
Carbon Black: Order inquiries from tire manufacturers remained at a high level as seen in the second 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: The structural imbalance between supply and demand persisted and the market saw a temporary shortage of electrodes. Tokai Carbon is also operating at full capacity at present. 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: Demand in the solar cell and semiconductor markets was strong. 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: Carbon black sales rose 13.1% 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 November 2, 2017)
The previous forecasts for net sales and operating income (from July 31) were revised upward. Growth in carbon black and graphite electrode sales drove the improvement.
Tokai Carbon Co. Ltd. published this content on 16 November 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 November 2017 23:29:01 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. 
