Although sales and profits declined YoY, mainly due to a significant decline in graphite electrode business, the global economy is recovering at a faster pace than expected. Our overall business performance is on a recovery trend from Q3 FY2020.
On the other hand, there are emerging risk factors as re-expansion of COVID-19 and the disruption of marine transportation due to the shortage of containers.
The steel industry, linked to graphite electrode business, is expected to take some time for a full-fledged recovery but United States already shows a good sign of clear recovery in demand. Currently, with the completion of inventory adjustment in the graphite electrode industries, our former 70% production cut has been eased.
Carbon black business was partially affected by the cold wave in southern U.S. in February accompanied by power outage, but is currently in full operation due to the recovery in demand from the global automobile industry.
Demand for fine carbon and industrial furnaces continues to be robust backed by the growth in the 5G and IoT markets. Components for semiconductor manufacturing equipment produced at Korean subsidiary led the good performance.
Smelting and lining business recorded higher sales but declined in margin due to the sales mix of the product. The market is robust by growing aluminum production, higher carbon electrode demand from the recovery in silicon metal demand and strong demand of furnace linings for the blast furnace mainly in China.
Along with the expanding European EV market and the demands of battery manufacturers, our French site will commence a production plan of anode material for LiB.
Summary of Consolidated Results
Net sales ¥54.0b, Operating income 4.1b, ROS 7.6
Net sales increased and Operating income declined YoY
Millions of yen
Jan-Mar 2020
Jan-Mar 2021
YoY Change
%Change
Net sales
52,790
53,968
+1,178
+2.2%
Operating income
6,750
4,077
2,673
39.6%
Ordinary income
6,573
3,999
2,574
39.2%
Net income attributable to
owners
4,583
1,968
2,615
57.1%
of the parent company
Group companies (As of March 31, 2021)
Consolidated subsidiaries: 34
Equity method affiliates: 2
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Tokai Carbon Co. Ltd. published this content on 11 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2021 09:29:20 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. 
