| Key Figures (¥ billion) | ||
|---|---|---|
| Nine months ended 31.12 | ||
| 2019 | 2018 | |
| Net Sales | 1588.5 | 1586.7 |
| Of Which: | ||
| Material | 835.9 | 889.4 |
| Health Care | 251.1 | 235.9 |
| Cost of Sales | 1079.2 | 1076.7 |
| Gross Profit | 509.3 | 510.0 |
| Selling, General & Admin Expenses | 369.0 | 352.9 |
| Operating Income | 140.2 | 157.1 |
| Of Which: | ||
| Material | 79.1 | 106.8 |
| Health Care | 35.8 | 34.1 |
| Ordinary Income | 145.7 | 165.7 |
| Income before Income Taxes | 146.2 | 164.7 |
| Net Income attributable to Owners | 103.8 | 115.9 |
Source: Asahi Kasei nine-month 2020 results.
COMMENT.
Asahi Kasei, the Japanese industrial conglomerate, has seen its revenues for the first nine months of fiscal 2020 edge up marginally on the year earlier although its profitability fell.
Total net sales were up 0.1% to ¥1588.5 billion, while operating income fell 10.7% to ¥140.2 billion, ordinary income by 12.1% to ¥145.7 billion and net income by 10.4% to ¥103.8 billion.
In the company's Health segment, whose products include filters for a number of medical applications, Asahi Kasei enjoyed increases in both revenues and operating income with the former up 6.4% to ¥251.1 billion and the latter by 5.0% to ¥35.8 billion.
Asahi Kasei highlighted the increased shipments in its resuscitation business and a decrease in fixed costs in its pharmaceutical operations as being particularly noteworthy. However, the third quarter saw medical devices impacted by a weaker euro, while the segment also saw a decrease in sales of dialyzers in Japan.
In contrast, in the company's Material segment, sales were down 6.0% on the fiscal 2019 comparator at ¥835.9 billion, while its operating income slumped 25.9% to ¥79.1 billion.
The segment's performance downturn reflected lower prices and volumes for its petrochemical products, the slowdown of automotive markets, and, reduced demand for hygienic and apparel material due to the downturn in the Chinese economy, as well as decreased shipments of its Li-ion battery separators following energy storage system (ESS) fires in Korea.
Looking forward, Asahi Kasei has revised downwards its full-year forecasts following the completion of its third quarter. The company has forecast net sales for fiscal 2020 to finish ¥2190.0 billion, up 0.9% on the prior year while operating income is expected to fall 14.7% to ¥178.5 billion and ordinary income by 16.6% to ¥183.5 billion, although they are yet factor in the impact of coronavirus.