Air Water decreased its sales revenue by 1.7% with the operating income down 20.5% and the quarterly profit down 37.7% comparing with the previous term. They say the operating income includes something like a rebound declination of the special profit posted last year. Actually the decrease rate should be 15.1% excluding that portion.

The industrial gas, medical, agricultural and food businesses were mainly affected by the coronavirus infection causing the whole declination of revenue and profit. However, the chemical and logistics businesses attained increases in sales revenue and profit. In addition to M&A’s contribution to raise the bottom of sales there remained some well-doing businesses like electronics-related and sanitary material businesses in the negative segments. It has reflected the corporate feature of Air Water which raises a flag of all-weather type business management.

The sales of industrial gas business decreased by 5.3% with the operating income down 17.4%. The on-site supply for the steelmakers and the supply of gases by tank truck and cylinder were stagnated. Oxygen in particular was greatly affected with the decreased sales of 2 billion yen.

On the other hand, the electronics-related products of Nihon Dennetsu and Japan Pionics were selling at a steady pace. Also in the overseas business the new consolidation of Air Water India brought an additional amount of 2.7 billion yen.

The chemical business increased sales by 47.1% with the operating income amounting to 251 million yen. (The operating loss in the previous term amounted to 29 million yen.) The new consolidation including Filwel was successful.

The medical segment decreased sales by 3.0% with the operating profit down 41.4%. Due to the coronavirus infection the number of operation and outpatient decreased so much causing less medical services like SPD and postponements or delays in the construction works of hospital facilities. Sanitary materials like masks and hand sanitizers made by Kawamoto Corporation were selling at a good pace. The energy business decreased by 2.8% with the operating profit up 19.3%. Although there was an increase in the delivery of LPG for consumer use, the sales revenue decreased due to the drop of selling price in connection with the CP price and the decrease in the sales of LPG for business use.

In this term there was a new addition of the LPG business in Vietnam. The agricultural and food businesses decreased sales by 8.4% with the operating income down 63.5%. The general request to refrain from going outside exerted influences and caused a sudden drop in the demand of frozen or processed food and the consigned production of beverage.

The sales of logistics business increased by 6.3% with the operating income up 12.7%. The delivery of low temperature logistics for supermarkets increased and the new consolidation of Katsura Tsusho effectively contributed to the result. The sales of seawater business decrease by 4.2% with the operating income down 53.5%.
The sales of magnesia for general ceramic use decreased and there was a negative influence also by the periodical inspection at Onahama Power Plant.

In the other field of business, the coronavirus also influenced some business in the overseas engineering, while there was an increase in the new consolidated business of Hitech of high power UPS. The O-ring business of Air Water Mach enjoyed good business for the semiconductor field.

Air Water has newly announced its forecast of business performance for the first half term of this year which was kept pending as of the full-year financial announcement in May, saying “The influence of the new coronavirus hit the bottom in May, and the business has been going at a recovering pace since June. A gradual improvement is expected from the second quarter.” According to the announcement, the estimated sales will decrease by 1.4% amounting to 380 billion yen with an operating income down 14.2% amounting to 19 billion yen and a profit for the quarterly term down 18.0% amounting to 10 billion yen.

Regarding a full-year forecast, Air Water leaves unchanged the previously announce figures namely an increase of sales by 0.1% amounting to 810 billion yen with an estimated operating income up 9.1% amounting to 46 billion yen and a profit for the term down 11.3% amounting to 27 billion yen.