The International Monetary Fund (IMF) revised the outlook for the global economic growth rate for 2023 downward in April. Measures to control inflation gained significant weight in developed countries, and while severe recession has been avoided to date, there are signs of economic slowdown. Despite the revision upward of 0.2 points to 3.0% on July 25, 2023, the business environment remains in a state of high uncertainty from factors including geopolitical risks and monetary and fiscal policy trends in major economies.
Under these circumstances, although there was some disparity between business segments and regions, the Company generally saw strong consolidated performance for January-June 2023 in carbon black, smelting and lining, etc. Net sales and operating income experienced double-digit increases YoY in concert with a rising ROS. Operating income, ordinary income, and quarterly net income each exceeded the initial forecasts, and progress against the full-year forecasts was steady.
EBITDA, a point of focus in measuring cash-based earning capacity, achieved double-digit growth. EBITDA margin was also over 20%.
While the business environment in the second half is expected to remain difficult to foresee, there is no change in the full-year outlook and the dividend forecast (36 yen per share).
Financial soundness and liquidity were maintained at favorable levels while still seeking balance with capital efficiency. The Company will leverage the newfound investment capacity provided by our credit rating being upgraded to A in May 2023 and continue to adopt a rigorous approach to investment in strengthening our business portfolio and striving to achieve growth as promoted in T-2025.
Summary of Consolidated Results
Carbon black and other core businesses were firm, leading to YoY increases in net sales and operating income
Net sales ¥178.4b (+13.6% YoY), operating income ¥21.7b (+30.0% YoY), ROS 12.2% (+1.6% YoY)
Millions of yen
Jan-Jun 2022
Jan-Jun 2023
YoY Change
%Change
Net sales
157,070
178,428
+21,357
+13.6%
Operating income
16,717
21,738
+5,020
+30.0%
Ordinary income
19,448
24,109
+4,660
+24.0%
Net income attributable to owners
9,253
15,904
+6,650
+71.9%
of the parent company
Group companies As of June 30, 2023
Average exchange rates:
2022
USD1= ¥122.89
Consolidated subsidiaries:
31
Equity method affiliates:
1
EUR1= ¥134.25
2023
USD1= ¥134.85
EUR1= ¥145.79
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Tokai Carbon Co. Ltd. published this content on 09 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2023 00:06:20 UTC.
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. 
