In the 'Tosoh Reports Its Consolidated Results for Fiscal 2020' news release dated May 12, 2020, we decided not to announce the results forecast because there are many elements of uncertainty such as the impact of the spread of infection from the coronavirus.
The spread of infection continues in Japan and in many other countries, and there is no clear target for a return to normalcy. We are unable to accurately forecast the impact on the Tosoh Group, but given the company's results for the first quarter, we hereby provide the cumulative results forecast for the second quarter of fiscal year 2021 based on information currently available.
In the second quarter (cumulative) of fiscal year 2021, Tosoh expects a decrease in net sales of nearly 20% compared with the same period a year earlier. This is attributable to a global contraction in demand in line with the spread of infection from the coronavirus, and to the subsequent impact of sudden declines in naphtha prices and overseas market conditions. With regard to operating income, in addition to the effects of decreased sales volume resulting from global-scale declines in demand, the impact of worsening trade conditions brought on by decreased prices for olefin products, PVC resins, and polyurethane products is expected to result in a profit decrease of nearly 70% compared to the corresponding period the previous year.
Regarding the full-year performance forecast, please note that the impact of the global-scale spread of infection from the coronavirus makes the calculation of a rational results forecast difficult. Tosoh will release its full-year results forecast as soon as conditions permit.
Forecasts are based on information available to the company on the date of the news release. Actual results, therefore, may differ from the forecasts because of unpredictable factors.
WHO WE ARE
Tosoh Corporation is the parent of the Tosoh Group, which comprises over 100 companies worldwide and a multiethnic workforce of over 12,000 people and generated net sales of JPY786.1 billion (US$7.2 billion at the average rate of JPY108.7 to the US dollar) in fiscal 2020, ended March 31, 2020.
WHAT WE DO
Tosoh is one of the largest chlor-alkali manufacturers in Asia. The company supplies the plastic resins and an array of the basic chemicals that support modern life. Tosoh's petrochemical operations supply ethylene, polyethylene, and functional polymers, while its advanced materials business serves the global semiconductor, display, and solar industries. Tosoh has also pioneered sophisticated bioscience systems that are used for the monitoring of life-threatening diseases. In addition, Tosoh demonstrates its commitment to a sustainable future in part by manufacturing a variety of eco-products.
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This document may contain forward-looking statements, including, without limitation, statements concerning product development, objectives, goals, and commercial introductions, which involve certain risks and uncertainties. Forward-looking statements are identified through the use of the word anticipates and other words of similar meaning. Actual results may differ significantly from the results expressed in forward-looking statements.
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