Toho Titanium Co., Ltd.
Financial Results FY2023
May 16, 2024
(C)2024 Toho Titanium Co., Ltd.
Outline
- FY2023 Financial Results Summary
- FY2024 Entire-Year Financial Forecasts
(C)2024 Toho Titanium Co., Ltd. | 2 |
1. FY2023 Financial Results Summary
(C)2024 Toho Titanium Co., Ltd. | 3 |
FY2023 Consolidated Financial Results
(In billions of JPY) | ||||
FY2023 | FY2022 | Change | ||
Entire fiscal year | Entire fiscal year | |||
Net sales | 78.4 | 80.4 | -2.0 | |
Operating income | 5.6 | 10.7 | -5.1 | |
Ordinary income | 6.3 | 10.5 | −4.3 | |
Net income | 5.0 | 7.5 | −2.6 | |
Average exchange rate | 144.6 | 134.9 | ||
(151.4¥/$ at the end of the | (133.5¥/$ at the end of | |||
(yen/$) | ||||
period) | the period) | |||
Dividend (¥/share) | 24.00 | 30.00 |
Net sales
■ Net sales decreased by 2.4% (−¥2.0 billion) year on year, with revenue from the titanium metal business rising but revenue from catalysts and chemicals falling.
Operating
results
■ Operating income: YoY −47.3% (−¥5.1 billion).
■ Ordinary income: YoY −40.5% (−¥4.3 billion).
■ Net income: YoY −34.0% (−¥2.6 billion).
(C)2024 Toho Titanium Co., Ltd. | 4 |
FY2023 Net Sales and Operating Income by Segment
(In billions of JPY)
Net sales
FY2023 | FY2023 | |||
(From October 1, | FY2023 | FY2022 | Change | |
(From April 1, 2023 to | ||||
2023 to March 31, | Entire fiscal year | Entire fiscal year | (Entire fiscal year) | |
September 30, 2023) | ||||
2024) | ||||
Titanium metal | 27.4 | 32.0 | 59.4 | 54.4 | +5.0 | ||
Catalysts | 3.6 | 3.8 | 7.3 | 8.8 | −1.5 | ||
Chemicals | 5.7 | 6.0 | 11.7 | 17.2 | -5.5 | ||
Total | 36.7 | 41.8 | 78.4 | 80.4 | −2.0 | ||
Operating | FY2023 | FY2023 | |||||
(From October 1, | FY2023 | FY2022 | Change | ||||
income | (From April 1, 2023 to | 2023 to March 31, | Entire fiscal year | Entire fiscal year | (Entire fiscal year) | ||
September 30, 2023) | |||||||
2024) | |||||||
Titanium metal | 1.3 | 3.2 | 4.5 | 6.5 | −2.0 | ||
Catalysts | 1.0 | 0.9 | 2.0 | 2.9 | −0.9 | ||
Chemicals | 0.8 | 0.2 | 0.9 | 2.6 | -1.7 | ||
Common costs and | |||||||
expenses not | (0.8) | (1.0) | (1.8) | (1.3) | −0.5 | ||
allocated to the | |||||||
segments | |||||||
Total | 2.3 | 3.3 | 5.6 | 10.7 | −5.1 | 5 | |
(C)2024 Toho Titanium Co., Ltd. |
Titanium metal Catalysts Chemicals
Overview of Each Segment
FY2023 Overview
- Sales were strong due to a recovery in aircraft-related demand and to continued moves away from supplies of Russian raw material in response to the war in Ukraine
- Sales for general industrial applications remained steady compared to the previous fiscal year, while demand for high- purity titanium for semiconductors declined sharply
- Increased costs of raw ore and electricity became apparent, leading to price corrections
- As there were no more sales from inventories produced before the previous fiscal year's cost increases, profits significantly decreased
- Demand for polyolefin catalysts softened due to the economic downturn in China
- The establishment of a new polyolefin manufacturing facility in China led to excess supply capacity, resulting in significant production cuts in neighboring countries
- The start of operations at a new factory (November 2022) increased the burden of fixed costs
- MLCC demand continued to decrease due to rising interest rates in the US and a protracted decline in the Chinese economy
- Soaring prices of raw materials, supplies, and utilities became apparent
- Booked hedging profit due to falling raw material prices for nickel on the London Metal Exchange
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Difference in Entire-Year Operating Income between
FY2023 and FY2022
(In billions of JPY)
6.5→4.5
Titanium metal
2.9→2.0
Catalysts
2.6→0.9
Chemicals
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Sales volume | Price | Ore and | ||||||||||
electric | Changes in | |||||||||||
(×)5.4 | (○)7.8 | |||||||||||
power | Exchange rate | inventories, | ||||||||||
(×)4.8 | Export | etc. | Sales volume | Depreciation | Exchange | |||||||
(○)1.5 | ( )0.2 | |||||||||||
Other costs transportation | × | (×)0.6 | of new plant | rate | Sales volume | |||||||
(×)1.2 | cost | (×)0.7 | (○)0.4 | Nickel ore- | ||||||||
(×)1.6 | ||||||||||||
(○)0.4 | Common | |||||||||||
related | ||||||||||||
Costs, etc. | ||||||||||||
items | costs | |||||||||||
(×)0.7 | (○)0.6 | (×)0.5 |
FY2022 | FY2023 |
Operating | Operating |
income | income |
10.7 | 5.6 |
(C)2024 Toho Titanium Co., Ltd. | 7 |
2. FY2024 Entire-Year Financial Forecasts
(C)2024 Toho Titanium Co., Ltd. | 8 |
Titanium metal Catalysts
Chemicals
Business Environment by Each Segment
Business environment in FY2024
- Demand for aircraft remains strong, and demand for high-purity titanium for semiconductors is recovering
- We expect to see an increase in sales volume compared to the previous fiscal year by utilizing titanium sponge produced in Saudi Arabia, where facilities are operating at full capacity
- Export prices for major customers in the calendar year 2024 are up about 10% year on year, and domestic prices for the first half of FY2024 will remain unchanged from the second half of FY2023, with a price increase factored in for the second half of FY2024
- Operating rate at polyolefin plants is gradually recovering, and we expect customer inventory adjustments to progress in the latter half of FY2024
- New PP equipment using our catalysts is scheduled to go into operation
- Operating rate of catalyst equipment is expected to increase from about 70% in the previous fiscal year to around 80%
- Inventory adjustment for communication applications such as smartphones is complete, but the recovery in demand is slow, and demand for automotive applications is expected to remain steady
- Although demand for MLCCs will gradually recover, we anticipate a substantial increase in nickel sales volume in FY2025
- We expect to see price declines compared to the previous fiscal year due to falling prices for nickel on the London Metal Exchange and lower sales for high-end smartphone applications
- We are reducing capacity utilization of nickel powder equipment from about 60% in the previous fiscal year to around 40% in order to improve the inventory balance
(C)2024 Toho Titanium Co., Ltd. | 9 |
FY2024 Consolidated Financial Forecasts
(In billions of JPY) | ||||
FY2024 | FY2023 | Change | ||
Entire fiscal year | Entire fiscal year | |||
Net sales | 95.3 | 78.4 | +16.9 | |
Operating income | 5.7 | 5.6 | +0.1 | |
Ordinary income | 5.0 | 6.3 | -1.3 | |
Net income | 3.7 | 5.0 | -1.3 | |
Average exchange rate (yen/$) | 145.0 | 144.6 | ||
(145.0¥/$ at the end of the | (151.4¥/$ at the end of the | |||
period) | period) | |||
Dividend (forecast) (¥/share) | 16.00 | 24.00 | ||
Net sales
Operating
results
■ Net sales will increase by 21.6% (+¥16.9 billion) year on year as we are targeting higher revenue from all businesses | |
and particularly the titanium metal business. | |
■ Operating income: YoY +1.3% (+¥0.1 billion). The chemicals business will see a substantial decline in revenue, but | |
profits from the titanium and catalysts will increase | |
■ Ordinary income: YoY −20.3% (−¥1.3 billion). Currency translation gains were booked at the end of the previous | |
fiscal year due to the depreciation of the yen. | |
■ Net income: YoY −25.3% (−¥1.3 billion). | 10 |
(C)2024 Toho Titanium Co., Ltd. |
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Toho Titanium Co. Ltd. published this content on 23 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 May 2024 01:02:05 UTC.