14 October 2001 04:21 [Source: ICIS news]
SINGAPORE (CNI)--Tosoh Corp has become the latest major Japanese petrochemical company to revise downwards its sales and earnings targets for the financial year ending 31 March 2002 with consolidated net income for the year expected to be 50% down on original forecasts at Yen6bn ($49.8m Euro54.5m). The company recorded net income of Yen6bn in 2000-01.
Operating income for 2001-02 is now expected to be Yen24bn, 27% below the original forecast. In the previous financial year, its operating income was Yen27.56bn.
A spokesman added that consolidated sales for the full year are expected to hit Yen450bn - 2.3% higher than originally forecast. Its sales in 2000-01 were Yen374bn.
Tosoh says global economic turbulence and the downturn in the semiconductor industry are the main reasons for the adjustments.
The spokesman said that despite full capacity production of zirconia and vinyl chloride monomer (VCM), domestic and foreign demand for information technology-related products such as quartz and targets continues to fall, while high crude oil prices and the depreciation of the Yen have led to increased raw material costs.
He added that the economic environment in the second half is expected to be equally harsh and particularly difficult to forecast due to uncertainty following the 11 September terrorist attacks on the US and the continuing volatility of crude prices and exchange rates.
However, the company said that it is committed to stepping up the pace of structural reforms and improving profitability.
Almost all major Japanese petrochemical companies have now revised down their full-year forecasts as the threat of a global recession looms.
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