“Taiyo Nippon Sanso revealed its closing for the second quarter of 2013. The consolidated sales was up by 9.4% and ordinary income up by 17.9% over the previous year. The net profit for the quarter term amounted to 12.2 billion yen owing to posting of the gain on sale of fixed assets (The net loss of 7.9 billion was recorded in the previous quarter term.)

The domestic sales marked 169.5 billion up by 1.5% thanks to the growth in the on-site operations and Thermos business, but an operating profit of 10.8 billion yen down by 2.1% due to the price-hike of raw materials affected by the increased electricity rate and for other reasons.

The overseas sales marked 57.4 billion up by 26.5% with an operating profit of 2.7 billion yen up by 147.5% thanks to the recovering economic trend in North America and the depreciation of yen. As for the other areas (Southeast Asian countries and China) the sales marked 22.6 billion yen up by 43.6% and an operating profit of 1.3 billion yen up by 56.2%, supported by the effect of new consolidation.

The business result by segment showed an increase in the sales of industrial gas-related business by 10.6% over that of the previous year. The domestic business was kept at a satisfactory pace for the sell makers of the principal users. While the sales of oxygen and nitrogen on an on-site basis marked better results than last year, the liquid supply of oxygen, nitrogen and argon declined in both delivered volume and sales due to the decrease in demand as a whole.

When it comes to the overseas business, there was an increase by 6.5% in sales in the field of bulk and on-site as aforementioned,

The packaged gas business increased by 19.5%. While the overseas business showed growth owing to the depreciated yen, the domestic business was struggling. The machinery and plants were up by 5.2%, but the operating profit of the industrial gas-related business was down by 5.2%.

The electronics-related business had been suffering a continuous downturn in demand in general, but some recovery sign showed up to mark an increase in sales by 5.2% owing to the rise in operation rate at customers’ plants, although it is no full-fledged recovery. The semiconductor equipment grew better than last year and also the result was supported by the withdrawal from the joint production business of monosilane which had been branded as “Negative Factor” last year.

When we analyze the growing area, we see a fifty-fifty contribution by the overseas market and the domestic business, namely the large factor of yen depreciation abroad and the practical growth in the domestic business especially the sales to the major users.

In the energy-related business, the sales was up by 6.4% and the operating profit down by 18.4%, with the gas segment up by 8% and the relevant equipment down by 7.8%. In the other lines of business, the sales was up by 13.2% and the operating profit down by 14.8%. In the medical field (the construction of hospital facilities), the sales of equipment business grew at a good pace and marked an increase by 5.4%, although oxygen for medical use declined in both volume and sales. The sales of the Thermos business was up by 24.9%.

The sales for the whole term is forecast to amount to 514 billion up by 9.7%, with an ordinary income of 28.8 billion yen, up by 24.9%.”