Teijin, a Japan-based specialty chemicals company, has posted net sale of ¥166 billion for the second quarter of 2009, a decrease of 29.8% as compared to ¥236 billion for the same period of 2008. The company recorded an operating income of ¥1.51 billion, as compared to ¥8.63 billion for the same quarter an year ago.
The company recorded a net loss of ¥17.7 billion, or EPS of 18.01 for the second quarter of 2009, compared to ¥2.72 billion, or 2.77 EPS for the same period of 2008.
Teijin forecasts that growth in domestic demand in the PRC is stimulating a recovery in production and exports in a number of neighboring countries, while Japan appears to be over the worst and poised for a rally in the short term. Nevertheless, the company expect the harsh operating environment to persist, as the economies of Europe and North America remain in the doldrums and raw materials prices and fuel costs, which had declined briefly, are once again pushing higher.
Looking ahead, it expects demand to improve gradually in the second half of fiscal 2009. In contrast, the pharmaceuticals and home health care businesses continue to benefit from steady market expansion.
As a consequence, it has currently forecast consolidated net sales of ¥760 billion in fiscal 2009, operating income of ¥13 billion and ordinary income of ¥1 billion, as results in the Synthetic Fibers and the Films and Plastics segments remain lackluster.