Latest Financial Results and Full Year Forecast
Consolidated Financial Results for the First Quarter Ended June 30, 2021
In the three-month period ended June 30, 2021, economic recovery was witnessed in certain regions as a result of efforts for responding to the COVID-19 pandemic, including vaccine rollouts and substantial financial easing and government finance measures taken in developed countries. At the same time, there is a need for ongoing caution with regard to growing credit costs and the deterioration of performance at companies in tourism, service, and other industries.
The Company’s revenue for the three-month period ended June 30, 2021, was up year on year due to higher revenue in the Metals, Mineral Resources & Recycling Division, a result of higher prices for coal and precious metals; in the Chemicals Division, a result of higher methanol prices and growth in plastic resin transactions; and in the Automotive Division, a result of increased sales volumes in overseas automotive businesses.
Despite the increase in selling, general and administrative expenses along with a rise in non-personnel expenses, profit for the period (attributable to owners of the Company) increased year on year following higher gross profit and a rise in share of profit of investments accounted for using the equity method attributable to earnings growth at steel operating company.
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(Billions of Yen)
| FY2020 1Q Results | FY2021 1Q Results | Difference | ||
|---|---|---|---|---|
| Revenue | 349.3 | 492.8 | +143.5 |  |
| Gross Profit | 39.0 | 56.4 | +17.4 | |
| Profit for the period attributable to owners of the Company | 2.4 | 16.9 | +14.5 | |
Changes of Yearly Financial Results (Cumulative)
Trends in Financial Data（EXCEL）
Segment Performance [Profit for the period attributable to owners of the Company]
![Segment Performance [Profit for the Period (Attributable to owners of the Company)]](img/img02e_210803.png)
(Billions of Yen)
| FY2020 1Q | FY2021 1Q | Difference | |
|---|---|---|---|
| Automotive | (1.8) | 1.1 | +2.9 |
| Aerospace & Transportation Project | (0.3) | 0.1 | +0.4 |
| Infrastructure & Healthcare | 2.2 | 0.8 | (1.4) |
| Metals, Mineral Resources & Recycling | (2.0) | 6.0 | +8.0 |
| Chemicals | 0.0 | 4.0 | +4.0 |
| Consumer Industry & Agriculture Business | 2.1 | 3.0 | +0.9 |
| Retail & Consumer Service | 0.1 | 0.6 | +0.5 |
| Others | 2.1 | 1.3 | (0.8) |
Main factors behind difference
- ■Automotive ¥1.1 billion (up ¥2.9 billion YoY)
- Increased due to higher sales volumes in overseas automobile transactions
- ■Aerospace & Transportation Project ¥0.1 billion (up ¥0.4 billion YoY)
- Recovery of shipping market conditions
- ■Infrastructure & Healthcare ¥0.8 billion (down ¥(1.4) billion YoY)
- Decreased due to the rebound from asset replacement in power generation businesses recorded in the previous equivalent period
- ■Metals, Mineral Resources & Recycling ¥6.0 billion (up ¥8.0 billion YoY)
- Increased due to higher profit from steel operating company with recovery of steel demand and recovery in coal market conditions
- ■Chemicals ¥4.0 billion (up ¥4.0 billion YoY)
- Increased due to recovery from the drop in methanol prices and higher transaction volumes of plastic resins
- ■Consumer Industry & Agriculture Business ¥3.0 billion (up ¥0.9 billion YoY)
- Increased due to higher sales volumes in overseas fertilizer businesses
- ■Retail & Consumer Service ¥0.6 billion (up ¥0.5 billion YoY)
- Increased due to higher sales volumes in food-related company
- ■Others ¥1.3 billion (down ¥(0.8) billion YoY)
Commodity Prices and Exchange Rates
| FY2020 Results (Apr.-Jun.'20 Avg.) |
FY2021 Assumption (Annual Avg.) |
FY2021 Results (Apr.-Jun.'21 Avg.) |
|
|---|---|---|---|
| Coking Coal *1 | US$119.0 / t | US$ 127.5 / t | US＄139.1 / t |
| Thermal Coal *1 | US$54.4 / t | US$ 80.0 / t | US＄109.0 / t |
| Crude oil (Brent) | US$33.4 / bbl | US$ 50.0 / bbl | US＄69.1 / bbl |
| Exchange rate *2 | ¥107.4 / US$ | ¥108.0 / US$ | ¥109.8 / US$ |
-
*1 : Coal prices are based on standard market prices and therefore differ from the Company’s selling prices.
-
*2 : Impact of fluctuations in the exchange rate on earnings: ¥1/US$ change alters gross profit by approx. ¥ 0.5 billion annually, profit for the year (attributable to owners of the Company) by approx. ¥0.25 billion annually, and total equity by approx. ¥1.5 billion annually.
Full Year Forecast of Fiscal Year Ending March 31, 2022
(Billions of Yen)
| FY2020 Results |
FY2021 Forecast |
Difference |
|
|---|---|---|---|
| Gross Profit | 188.1 | 220.0 | +31.9 |
Profit for the year attributable to owners of the Company |
27.0 | 53.0 | +26.0 |
FY2021 Profit for the Year Forecast by Segment
Caution regarding Forward-looking Statements
This document contains forward-looking statements based on information available to the Company at the time of disclosure and certain assumptions that management believes to be reasonable. Actual results may differ materially based on various factors including the timing at which the COVID-19 pandemic ends; changes in economic conditions in key markets, both in and outside of Japan; and exchange rate movements. The Company will provide timely disclosure of any material changes, events, or other relevant issues.
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