The company showed mixed results due to the slowed growth “in China and other emerging nations”.
Toyo Ink showed net sales for the first half of the financial year were ¥133.1 billion ($1.3 billion/€1.2 billion), which was a 5.6 percent?decrease from last year, but operating income increased 4.8 percent to ¥8.86 billion ($87.5 million/€82.8 million), while net income was ¥5.25 billion ($52 million/€49 million), a decrease of 7.5 percent.
Toyo Ink reported: “During the first half of the consolidated fiscal year under review, the global economy showed continuous improvements supported by consumer spending in the US. However, the pace of growth slowed further in China and other emerging nations. In addition, the uncertainty and downside risks of the global economy are increasing, mainly due to the spread of exclusive politics and society. As a result, the economy continued to stagnate in Japan as well.”
The sales of the packaging materials related business fell 0.4 percent year-on-year to ¥31.84 billion ($314 million/€297 million), and operating income increased 37.7 percent to ¥1.58 billion ($15.6 million/€14.7 million). The company also noted that “in addition to the continuous decline in domestic demand for gravure inks for publication, sales of solvents as resale products declined”, but “on the other hand, domestic sales of mainstay gravure inks for packaging were strong, mainly for beverage and private brand applications.
“Demand for gravure inks for construction materials recovered in the latter half of the period, and profitability improved. Overseas, sales of eco-friendly inks for packaging in the largest market segment continued to expand in Southeast Asia and India”. The printing and information related business showed a decrease in sales to ¥40.48 billion ($400 million/€378 million), down 5.8 percent year-on-year, but operating income increased 77.3 percent, to ¥1.57 billion ($15.6 million/€14.7 million), and this was “due to the effects of cost reduction initiatives”.
Concluding, Toyo Ink said: “In offset inks, the export profit from Japan was squeezed by the strong yen, in addition to the continuous decrease in demand due to the structural depression where the information-related print market shrank associated with the progress of digitalisation in Japan.
“Meanwhile, sales of UV ink expanded not only in Japan but also on a global scale, particularly in Europe, and hard coating agents for touch panels sold well. Sales were weak in China and Southeast Asia, reflecting the slowdown of economic activity. In India and Brazil, sales expanded and profitability also improved.”