Japan’s Toray targets sales growth on expected recovery of economy

10 May 2013 17:38  [Source: ICIS news]

LONDON (ICIS)--Toray aims to achieve year-on-year sales growth of about 15% in its current fiscal year ending 31 March 2014 as the global economy is expected to recover gradually, the Japan-based international fibre, textile, chemicals and plastics group said on Friday.

Toray said that net sales for the 12 months to 31 March 2014 should reach about $19.4bn (€14.9bn), up from $16.9bn in the year-earlier period, with net income to rise 33% year on year to $684m.

"While there are lingering concerns over the handling of the European sovereign debt problems, the global economy is expected to recover gradually driven by the growth in emerging countries led by China as well as in the US," Toray said.

"The Japanese economy, despite some uncertainties about the future, is also expected to make a moderate recovery on the back of improvement in exports fuelled by corrections to the strong yen, post-earth quake reconstruction demand and improved business sentiment resulting from expectations on the economic policies of the administration [of Prime Minister Shinzo Abe]," the company added.

At the same time, Toray will continue to focus on its management programme – called "Project AP-G 2013" - to further improve efficiencies, drive earnings growth, and strengthen its revenue base, it said.

For the fiscal year ended 31 March 2013, Toray's net income was down almost 25% year on year to $515m as the global economy "remained under harsh conditions", the company said.

Toray’s projections for fiscal 2014 are based on an estimated exchange rate of yen (Y) 95 to the US dollar.

($1 = €0.77)

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog

By: Stefan Baumgarten
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