Air Water second quarter for financial year 2022 ending in March 2023 finished with the sales increased by 10.5% and the operating income decreased by 18.1% compared with the same term last year. The profit attributable to the parent company’s shareholders for the full year decreased by 20.7%.

　The Digital & Industry Division enjoyed a continuous growth in the on-site business with the electronics industry and the consequent sales of related equipment. The deliveries by tank trucks and cylinders remained flat similarly to the previous year.
The oxygen business increased in sales amounting to 5.8 billion yen which was attributed to the rise of selling prices caused by the cost-hike of electricity mainly in the on-site business for steelmakers. The operating income, on the other hand, decreased due to the time lag between the cost hike of electricity and the revision of selling price, and also due to the exclusion of Indian affiliate from consolidated accounting.

On the other hand, the Energy Solution Division increased revenues thanks to the rise of the selling price of LP gas and kerosene related to the market situation. Although there were hikes in the prices of fuels like PKS and coal for the power generation field and the consequent transportation costs, they could not be reflected to selling prices under the FIT system, resulting in a great damage in terms of profit.

The Health & Safety Division enjoyed a steady business represented by the medical supply processing distribution (SPD) leading to the successful order for consignment as well as the business of medical equipment, home therapy and disaster prevention.

The Agri/Food Division had the contribution by the recovery in the commercial demand for ham/delica business as well as the new additional consolidation with the direct sales of agricultural products.

In the other divisions, while there were positive factors in the sales of the gas-related equipment in the North American gas business, there was a disturbance in the profit terms due to the hikes in fuel and transportation costs in the power generating business dealt with by Nihon Kaisui.

　The company is reviewing the forecast of the third quarter and later anticipating a constant continuance of the cost hiking effects in the power generating business. The company left unchanged the sales revenue 1 trillion yen which was announced previously, but lowered an operating income by 8 billion yean amounting to 62 billion yen, and amended a profit attributable to the parent company’s shareholders for the full year down by 4 billion yen to 44 billion yen.

Out of the forecast, the digital and industrial segments to which most of the gas business belongs are anticipated to go ahead causing a furthermore rise of selling prices following the uprising electricity cost in the steelmaking on-site business. To this end, the forecast of sales revenue at the beginning of the term has been amended with an increased by 18 billion yen amounting up to 317 billion yen. The company has recently announced its capital investment one after another in the Asian Area, but is also actively advancing in earnest into the North American industrial gas business.

President Kiyoshi Shirai suggested saying, “We are planning M&A and capital investments on both sides of on-site and tank truck/cylinder delivery in North America. As most of the market has already been dominated by the international industrial gas majors, we have no other way than filling the gaps as our strategy. To this end, it is suggestive as a means for us to tie up with the distributors rooted in the region.”