Sales increased by 11.1% with the operating income up 11.5% and the profit for the term up 40.8% over the same term of last year. The end-term dividend rose by 1 yen to 12 yen, and the dividend for the full fiscal year rose by 3 yen to 23 yen. The substantial growth of profit for the sales amount was attributed to the lessened corporate income tax by about JPY12.2 billion on the profit & loss account from withdrawal of the Matheson Tri-Gas’ deferred tax liability which had occurred following the reduction of federal corporate tax under the US Tax Reform so called “Tax Cut and Jobs Act” (enacted in Dec.2017).

For reference, at the end of FY2017 there was also a withdrawal of deferred tax liabilities in connection with the liquidation of Matheson Tri-gas’ affiliate, which brought a tax reduction of about JPY 1.1 billion. In terms of actual profit, therefore, the profit for the first term amounted to about JPY33.6 billion and JPY36.7 billion for the term, which brings an increase of about JPY 3.1 billion.

In the domestic gas business, oxygen and nitrogen stayed flat, but the sales of argon for silicon wafers increased well in volume. In addition, the on-site business remarkably grew with an increase of sales by 22.3% over the previous term owing to the operation of Kurashiki Plant of JEF Sanso Center from the beginning of 2018.

The price revision of carbon dioxide moved forward at a good pace and the sales of specialty gas for semiconductors remained at a satisfactory pace. In terms of sales, the whole segments saw increase by 6.5% with the segmental profit up 4.4% although there were changes in external factors such as the rise in selling prices related to the increased import price and the increased cost due to the price hike of crude oil in terms of profit.

In the segment of gas business in the US, particularly the gas business purchased from Air Liquide, there was an addition of sales in the amount of about JPY13.8 billion. In the sales of bulk gas there was also good results owing to the satisfactory sales of carbon dioxide/dry ice of Continental Carbonic which joined the group in 2014 and the demand for packaged gas and hardware goods grew steadily. The sales increased by 17.2% with the segmental profit up 12.3% over the previous term.

There was a noticeable effect of M&A also in the Asia and Oceania business. The consolidation of Australian Supagas which TNSC bought in December 2016 brought an effect to bring an additional sales amounting to about JPY9.1 billion. Furthermore, Taiyo Gases of Thailand applied for consolidation at the same time also contributed to the sales results. The sales of industrial gases increased by 26.9% amounting to about JPY65.8 billion.

In the electronics-related business on which TNSC focuses, specialty gases were selling well in China, Taiwan and Korea where capital investments are active. Sales of electronics gases increased by 22.1% amounting to about JPY31 billion. The sales of the whole segment increased by 20.1%, with segmental profit increase by 78.8%.

The Thermos business grew well in Japan and Korea in terms of sales, but domestically, profits decreased due to the increased expenses in advertisement and so on. Furthermore, the operation rate of its Malaysia plant which had dropped during the first half caused a negative factor. Therefore, the sales of whole segment increased by 3.5% with the segmental profit down 16.5%.
From the next fiscal year the segment will stand alone as the “Thermos Business” and other separated business (domestic real-estate business, etc.) will be transferred to the domestic gas business segment.

Forecasting the next fiscal year, the sales as of the 2nd quarter would be up 7.3% amounting to JPY328 billion with an operating income up 5.4% amounting to JPY31.2 billion and profit for the term up 1.9% amounting to JPY18 billion. As for the forecast throughout the fiscal year, they forecast sales up 3.7% amounting to JPY670 billion with an operating income 7.7% amounting JPY 64.5 billion and a profit for the term down 18.2% amounting to JPY40 billion.

Although the forecast of profit for the year shows a substantial decrease at a glance, the profit would be deemed to be about JPY3.3 billion according to the actual profit of about JPY36.7 billion mentioned at the beginning above.