05 February 2001 06:39 [Source: ICIS news]
SINGAPORE (CNI)--A sharp fall in vinyl chloride monomer (VCM) prices in Asia has led Japan's Tosoh Corp to lower by Yen500.0m ($4.5m/Euro4.8m) to Yen28.5bn its consolidated operating profit forecasts for the financial year ending on 31 March, CNI learned on Monday.
VCM prices fell from $575.00/tonne in H1 of fiscal 2000 to $460.00/tonne in H2. Sales saw a 2% drop during that time.
The liquidation of a magneto-optical disk subsidiary is expected to drag the company's net profits down by Yen500.0m to Yen9.5bn, or 58% above last year's result, according to company sources. Overall, the company's consolidated pre-tax profits are expected to rise 17% to Yen25.0bn.
Tosoh's other businesses fared better.
In petrochemicals, higher aromatics prices were able to offset the lower exports of polyethylene, the sources added.
Sales grew for higher value-added products such as zirconia, which is used for connecting optical fibre. Higher sales of the company's synthetic glass material (for liquid crystal display film) also helped to boost Tosoh's financial performance.
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