Tokai Carbon Co., Ltd. Revises Consolidated Earnings Guidance for the Year Ended December 31, 2016
January 31, 2017 at 09:00 am EST
Share
Tokai Carbon Co., Ltd. revised consolidated earnings guidance for the year ended December 31, 2016. For the period, the company now expects net sales JPY 88,500 million, operating income of JPY 1,000 million, ordinary income of JPY 1,700 million and net loss attributable to the owners of the parent company of JPY 8,300 million against previous guidance of net sales of JPY 87,000 million, operating income of JPY 700, ordinary income of JPY 1,000 and net loss attributable to the owners of the parent company of JPY 5,100. Reason for revisions: Net sales are anticipated to exceed the previous forecast due to graphite electrodes and fine carbon sales volumes that exceeded the forecast, as well as a lower yen exchange rate and other factors. Operating income is expected to exceed the previous forecast due to progress in improving selling prices in the Carbon Black business. Ordinary income is expected to exceed the previous forecast due to the operating income improvement factors as well as a JPY 537 million decrease relative to the forecast for foreign exchange losses booked as non-operating expenses associated with the decrease in the value of the yen at the end of the fiscal year. Moreover, net income attributable to the owners of the parent company was lower than the previous forecast due to the impairment loss of approximately JPY 4 billion and the special severance payments of JPY 286 million.
Tokai Carbon Co., Ltd. is one of the Japanese leaders in manufacturing and marketing of coal and graphite products. The group is also producing industrial furnaces. Net sales break down by family of products as follows:
- coal and graphite products (69.6%): coal, graphite electrodes, special graphite and friction materials primarily for industrial, electronic, energy, automotive and mechanic applications;
- cathodes for smelting aluminum and furnace linings (18.1%);
- industrial furnaces and heating products (6.9%): for thermal processing of ceramic products, electronic components, metals, glasses, etc.;
- other (5.4%).
Net sales break down geographically as follows: Japan (24.6%), Asia (26.7%), the United States (26.5%), Europe (11.6%) and other (10.6%).