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Nippon Sanso Holdings Increases Sales/Profit by Cost Pass- through onto Prices
Although the delivered volume of air separation gases decreased as affected by the world-wide rise of energy costs and commodity prices, both sales and profit increased in the global segments of Japan, Europe, U.S., Asia and Oceania owing to the cost pass- through onto prices, the upgraded productivity and the growth in the requirements from the electronics field. In terms of whole corporate performance, the sales revenue increased by 24%, the core operating income increased by 19.9% and profit for the term by 14%. For reference the influences by the yen depreciation for the fiscal period showed an increase of about 79.6 billion yen in the sales revenue causing the core operating income up about 9.9 billion yen.
The term-end dividend is 20 yen and the full-year dividend to be 38 yen. For the dividend in this fiscal term, an increase by 2 yen is planned for the first half year and 40 yen for the full year.
In the regional segment, Japan increased sales revenue by 13% with the segmental profit up 2.4%. The sales in volume of air separation gases decreased, but the businesses in both gas and the related fields including construction works and welding equipment showed a satisfactory result. So, they
made up for the increased portion of electricity and material costs.
The company has shown an aspect that the cost hike trend of electricity across the country seems to be calming down now though it has lasted for these two years. It intends to keep seeking means to cope with the rise of various costs, and to tackle pricing to upgrade an additional value for users at the same time.(Public Relations Dept.)
The U.S. increased sales revenue by 34.8% with the segmental profit up 35.7%. The business continued to be solid owing to the operation of new plants in the fields of dry ice and liquefied carbon dioxide for the food industry. For reference, disregarding the influences of exchange rate, the sale revenue increased by 12.1% with the segmental profit up 12.2%.
Europe increased sales revenue by 30.1% (up 20.4% regardless of any exchange rate impact) with the segmental profit up 32.7% (22.6%). Due to the hike of energy costs the operation of the major users like steelmakers or non-ferrous manufacturers declined and there were also decreases in bulk and on-site businesses. However, thanks to the measure of pass-through on to selling prices the revenue increased and the productivity was improved leading also to realization of a better profitability.
Asia and Oceania increased sales revenue by 29.5% (up 14.4%) with the segmental profit up 20.5% (up 5.7%). There was a constant delivery volume of air separation gas. The electronics business also was thriving in both gas and equipment fields.
The capital investment during the term amounted to 91.8 billion yen. According to the Public Relations Dept., even when cost hikes occurred including energy, investments were made in new construction cases like plant replacements and HyCO plants. Also, for this year an investment amounting to 140.4 billion yen is planned to propose new technologies of application to meet such requirements as carbon neutral and other user needs. (Public Relation Dept.)
The forecast of FY2023 ending March is that sales revenue decreases by 2.2% amounting to 1.16 trillion yen with a core operating income down 3.6% amounting to 127.5 billion yen and the profit for the term attributable to the parent company owners is estimated to decrease by 3.2% amounting to 73.5 billion yen.
An assumed exchange rate is set at a higher valuation than the end of last term and the sales revenue is forecasted to decrease by 18.3 billion yen with a core operating profit down 2.2 billion.