Iwatani suffered decrease in sales by 3.3% with operating income down 19.6%, ordinary profit down 15.9% and 2Q end-term profit down 16.2% comparing with the same period of previous year. The negative result in the sales and profit was attributed to the decreased import price of LPG.

Regarding the profit affected by the change in LPG price, Iwatani points out a decrease by 1.9 billion yen in the 2Q term of this year while it worked as positive to be an increase of 400 million yen in the same term as the previous year. They say that the ordinary profit excepting the market factor turned out to be up 4.3% amounting to 11.8 billion yen.

While the company had a difficult time in the integrated energy business including the LPG, the industrial gas and equipment business achieved a good pace comparatively with the sales increased by 1.8% amounting to 92.553 billion yen and an operating income up 6.6% amounting to 5.12 billion year. It was attributed to the growth in the sales of welding equipment for automobiles and the machinery including the production facilities of electronic parts. However, the industrial business remained sluggish with the sales decreased by 0.5% amounting to 50.5 billion yen or so. Due to the declined operation rate of the main users of optical fiber and electronic parts, the onsite supply of various air separation gases and the sluggish sales of liquid hydrogen for backup exerted influences. In respect of profits, the market price of helium rose up by the worldwide tight supply/demand situation which improved the profitability of the gas. Referring to the domestic gas business, there is an actual condition of the particular hike of the logistic cost which began to affect the profitability.

Making the most of the logistics department in the Hydrogen Division under the Industrial Gas Group newly established on October 1, Iwatani is planning to look for a solution of the issue and also redevelop the delivery system including a new base also for the carbon dioxide business which now usually owes a long-distance transportation due to the decreased bases of production.

In the overseas deployment, it is said that Iwatani got requirements of plant expansion for future from China which takes 60% of Iwatani’s business abroad despite the decreasing operation rate at user side.

Thanks to the increased revenue in the helium business it seems that the gas business with the country is going at a steady pace.

On the other hand, Iwatani acquired four hydrogen stations from Messer in the State of California, and as it was followed by the acquisition of Advanced Specialty Gases in the State of Nevada in October Iwatani is proceeding with the reinforcement of the industrial gas business in the United States.
Akiji Makino chairman and CEO explained in the financial closing speech the submission of application for subsidation to the Authority of San Francisco for the planned construction of new hydrogen stations at the ports of Los Angeles and San Francisco, and said “Our four hydrogen stations in the States sell more hydrogen than our 27 domestic stations do. For our future hydrogen business we are planning to construct another hydrogen plant in the suburbs of San Francisco.” This comment suggests a possibility of investment in the gas producing base in the region.

Regarding the forecast of the result throughout the fiscal year, the sales will increase by 4.5% comparing with the previous year amounting to 747.3 billion yen with an operating income up 15.3% amounting to 30.5 billion yen, an ordinary profit up 10.2% amounting to 33 billion yen and the net profit for the term up 6.7% amounting to 20.5 billion yen.