Q1 2019 Kuraray Co Ltd earnings Presentation
Osaka can 31, 2019 (Thomson StreetEvents) -- Edited Transcript of Kuraray Co Ltd earnings conference growl or presentation Wednesday, can 15, 2019 at 10:59:00am GMT
TEXT version of Transcript
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Corporate Participants
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* Keiji Taga
Kuraray Co., Ltd. - Managing Executive officer & Director
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Presentation
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Keiji Taga, Kuraray Co., Ltd. - Managing Executive officer & Director [1]
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This is Taga. Thank you identical much although joining our conference growl today at the charge of your identical busy schedule. although I said at the preceding earnings presentation from this year, one by one, principal of each company participate us at the quarterly earnings presentations at this conference call. Here, we own Mr. Abe, who is the principal of Isoprene Company.
Now we'd parallel ought begin the earnings presentation of Q1 FY 2019. amuse become ought Page 2. This is the operation of Q1 FY '19. although the dirt econmic is slowing down because of the diminish of car manufacturing and lower ask although electrical and electrical devices, our sales declined although well. although at the slide, the net sales was down by 5% ought exist JPY 141.6 billion. The operating earnings declined by 34.5% ought exist JPY 14.6 billion. The mutual earnings declined by 41.6% ought exist JPY 12.8 billion. The net earnings declined by 59.7% ought exist JPY 6.1 billion. Both sales and favour declined significantly year-on-year. although ought PPA of Calgon Carbon, with the completion of the acquisition at FY '18, was determined at the end of final year real numbers of FY '18 are retrospectively applied after the determination.
Page 3, please. From here, I'd parallel ought explain the operation of each segment. First, Vinyl Acetate. at poval resin, the sales volume although wealth utilize decreased and the manufacture portfolio continued ought inspire toward high value-added products. at optical-use poval film, because of declined operations at one of the produce lines, there was a hang at shipments. although a result, the sales volumes stayed flat with the preceding year. The bother is already solved, and there is no shock at Q2 performance.
In water-soluble PVA film, sales although utilize at unit dose detergent continued ought expand. at PVB, because of slowdown of economies, the sales volume although automotive and construction applications declined. at EVAL, sales decreased although provisions packaging applications because of the lingering manufacture of the eliminate incident at the United States plant final year. at addition, sales although automotive gas tank applications became feeble although the produce of automobiles declined. because of these reasons, both the sales and favour declined significantly.
Please become ought Page 4. at Isoprene segment, at Q1, both sales and favour declined. at Isoprene-related, though raw mystery prices began declining from the end of the preceding year, the sales volume of SEPTON decreased although ask contracted greatly at China. However, the operation of handsome chemicals remained firm.
In GENESTAR, the falling raw mystery prices contributed, still shipments of connector applications fell because of lower ask although electrical and electrical devices.
Page 5, please. at Functional Materials, both sales and favour declined year-on-year at Q1. at the real number although FY '18, we retrospectively applied the resolution of PPA although Calgon Carbon. at methacrylate, though a refuse at sales volume, results remained stable because of the descend of raw mystery prices at addition ought a continued inspire toward high value-added products. at medical, sales were steady, specially although cosmetic and restorative dentistry products. at Carbon Materials and Calgon Carbon, ask remained stable at the activated carbon market, still Calgon Carbon's U.S. plant operations declined although of the utility facility trouble.
Please become ought Page 6. at Fibers and Textiles, at Q1, the sales declined, still during the favour increased year-on-year. at CLARINO, sales although luxury manufacture applications remained stable. However, sales declined although utilize at sports shoes. at KURALON, the sales volume increased although utilize at reinforcing rubber. at consumer wealth and materials, sales of will KURAFLEX remained stable although sales of high value-added products expanded, such although medical and cosmetics, in spite of a autumn at the sales figures of wealth products.
Please become ought Page 7. This slip shows the FY 2019 Q1 results of each fragment at comparison with the results of the preceding year although your reference.
Page 8, please. This slip shows the operating earnings distinction of JPY 7.7 billion among Q1 of FY '19 and Q1 FY '18 and the factors affecting the change. at condition of volume and capability utilization, at optical-use poval film, there was an shock from the declined utilization of one of the produce lines at Calgon Carbon U.S. factory. at EVAL, the just fragment declined although of the eliminate incident and we are at the process of recovery. Also, globally, car produce declined, and there was an shock at our sales, too. although the econmic is slowing down, poval resin, PVB, SEPTON, GENESTAR, the volume of which declined, and totally, we had a refuse at favour of JPY 6 billion.
Terms of commerce had an shock from the autumn of raw mystery and fuel cost. The fare was reduced. However, because of yen appreciation against the euro, totally, there was no impact. Operating expenses and others increased by JPY 1.7 billion because of amplify of depreciation, amortization, R&D expenditure and labor cost.
Page 9, please. This slip shows the asset district at the remainder division and the comparison with the end of final year. offer wealth increased by JPY 21.4 billion greatly because of the amplify of JPY 7 billion at the inventory. Also, short-term investment securities increased by JPY 16.8 billion. Noncurrent wealth increased by JPY 22.1 billion. This is an on-balance manufacture of JPY 20 billion of the leases of some overseas affiliates because of the application of the new hire accounting standard.
Next, Page 10, please. This slip shows liabilities and net wealth at the remainder sheet. The offer liabilities increased by JPY 28 billion. That includes the big investment at Thailand, and we had ought greet the shortage although capital. And although that, we issued the commercial essay of JPY 30 billion. Noncurrent liabilities increased by JPY 20.5 billion because of the on-balance of the leases that was explained ago that was JPY 20 billion.
Net assets. The shock of JPY 1.6 billion because of the fragment buyback, and there was a refuse at the foreign coin version adjustment of JPY 1.3 billion. And the dividend payment exceeded the net favour by JPY 1.6 billion. Totally, the refuse of JPY 5 billion.
Page 11. This slip shows the revised foretell although FY 2019 at comparison with the initial plan. Based at the Q1 originate and the contemporary economic situation, we revised the foretell although the first half and the total year of FY 2019. We own no revised numbers although the second half of the year.
Please become ought Page 12. at this slide, we display the revised foretell although FY 2019 at comparison with FY 2018 results.
Page 13, please. although your reference, we display this FY 2019 revised foretell per fragment at comparison with FY 2018 results and the initial plan.
Lastly, Page 14. although your reference, here is the operating earnings by fragment and the comparison of FY 2019 revised foretell with FY 2018 results and the initial plan.
With this, I'd parallel ought end my explanation. Thank you identical much.
