(Unit: Millions of Yen)
Financial Highlights
| Statements of Income |
Sep.1995 |
Sep.1996 |
Mar.1997
(Estimate) |
| Net Sales |
487,599 |
516,958 |
1,070,000 |
| Operating Profit |
18,994 |
21,220 |
|
| Ordinary Profit |
16,522 |
19,449 |
42,000 |
| Net Income |
5,131 |
7,379 |
19,000 |
| Net Income per Share (yen) |
3.56 |
5.12 |
|
| Cash Dividend per Share (yen) |
3.00 |
3.00 |
6.00 |
| Balance Sheets |
|
|
|
| Total Assets |
1,038,000 |
1,062,827 |
|
| Shareholders' Equity |
392,908 |
400,803 |
|
| Shareholders' Equity/Total Assets |
37.9% |
37.7% |
|
| Net Sales by Segment |
|
|
|
| Chemicals and Plastics |
164,182 |
164,430 |
|
| Housing and Construction Materials |
166,882 |
190,194 |
|
| Fibers and Textiles |
73,943 |
74,257 |
|
| Special Products and Services |
82,592 |
88,077 |
|
Summary of Interim Results for Fiscal
1996 (Non-consolidated)
The Japanese economy continued on its course
of moderate recovery, supported by investments in housing
and public sector investment.
During the first half of the fiscal year,
Asahi Chemical, while pressing for further improvements
in efficiency, invested resources predominantly in existing
core business and new growth businesses in order to attain
greater international competitiveness and recover earning
power. Operational results improved from a year ago, with
strong performance in housing and electronics related products
and the rewards of cost rationalization. Sales for the fiscal
half were 516.9 billion yen, ordinary profit was 19.4 billion
yen, and net income was 7.3 billion yen.
Results in Chemicals and Plastics failed
to match those of a year ago, owing to rises in prices of
raw materials such as naphtha, as well as weak overseas
markets. Housing and Construction Materials brought healthy
results, especially on the strength of increasing sales
of residential housing units. Fibers and Textiles showed
great improvement over a year ago, thanks to pervasive efforts
to rationalize costs, in addition to the steady performance
of functional fibers. Special Products and Services performed
well, owing to rising sales of electronics related products
and in the ion-exchange membrane business.
While it is widely expected that the Japanese
economy will continue on its present course of moderate
growth, uncertainties remain regarding the world economy
and exchange rate trends. Given the maturity of the domestic
economy, the persistent downward pressure on prices, as
well as the shift in the petrochemical industry to an era
of global competition, we recognize that the business environment
in which Asahi Chemical operates is in the midst of major
structural transformation.
Considering these circumstances, Asahi
Chemical has formulated the Win"G"21 mid- to long-term plan
which lays out goals to be attained by 2005 and sets the
course for a fundamental restructuring of corporate business
operations in order to achieve these goals. Following this
plan, we are establishing simplified management systems
which will bring swift decision making, concentrating our
operations on our core businesses, accelerating the development
of new growth areas business, and actively developing overseas
operations.
This has led to greater emphasis on electronics, health
care, and housing related fields; a basic shift away from
raw materials and commodities toward functional materials
and finished products; as well as an increased ratio of
overseas production in order to meet the challenges of the
newly competitive era.
Asahi Chemical intends to devote all of its power to carry
out the Win"G"21 initiative in order to establish an internationally
competitive and highly profitable foundation upon which
to build into the 21st century.
For the fiscal year, our goal is to attain
sales of 1,070 billion yen, ordinary profit of 42 billion
yen, and net income of 19 billion yen. The interim dividend
is 3 yen per share, and the planned dividend is 6 yen per
share for the fiscal year.
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