Taiyo Nippon Sanso (TNSC)’s sales revenue in the term ending June 30 decreased by 12.3% with the core operating profit down 35.2%, the operating income down 33.3% and the profit for the quarter term down 39.1%.

To summarize, each segment experienced a substantially negative result under the unavoidable influences of the new coronavirus infection to the whole of the productive industries despite the good performance in the gas and relative construction business relating to semiconductor.

In the domestic industrial gas business there was a considerable decrease in the demand of oxygen and nitrogen for the major users of steelmaking, nonferrous and chemical industries. Argon stayed at just a slight decrease with the steady demand of semiconductors despite the decrease in the welding applications. The demand of specialty gases for electronics grew steadily and that of equipment and equipment construction for them stayed at the same level as last year. The segment as a whole decreased sales by 9.2% with the segmental profit down 19.4%.

Regarding the gas business in the US, the packaged and bulk gases sold much less mainly for the automobile industry. The on-site business also remained sluggish due to the reduced operation rate of users although there was an incremental effect of the new plant which was built up in June of last year. The equipment and construction business saw a great deal of decrease due to the self-restraining move in the state which caused a sales suspension period at retailers. It resulted in the decrease by 9.7% with the segmental profit down 31.9% comparing with the same term as that of previous year.

The gas business in Europe resulted in a substantial decrease as the sales of next-generation refrigerant in Italy was rather sluggish and the stagnant production as a whole of air-separation gases caused declination of demand.

The equipment and construction business consisting mainly of welding/cutting machines also saw a substantial decrease, with sales revenue down 20.3% and segmental profit down 50.9% which turned out to be the largest negative movement as a regional segment.

Regarding the Asia and Oceanian gas business, the slowdown of production affected by the lockdown in the Philippines forced a declination in the sales of bulk gases.

On the other hand, the delivery of specialty gases was on the increase because the Chinese semiconductor market particularly was not affected by the coronavirus and the operation rate of users was at a growing trend. However, in the equipment and construction business, spot orders decreased in Singapore and welding equipment and materials stayed sluggish. The segment as a whole decreased the sales revenue by 10.4% with the segmental profit down 10.3%.

As for a full-year forecast, TNSC says, “We forecast a positive transience to continue in the semiconductor field in the future, too, and there appears a sign of recovery for the period from the second quarter in the automobile and other industries. We also put into account a planned improvement in profit like the reduction of fuel adjustment cost in electric fare and the revision of gas price which we have been tackling since last term.

TNSC has not made any modification of its forecast based on the previous announcement of “Gradual Recovery of the World Economy from the Second Quarter and Close to Normalization from the Third Term”.