Net sales for the first three quarters of fiscal 2012 (from April 1, 2012 to Dec. 31, 2012) were ¥187,189 million , a 0.9% over 2011’s first three quarters. Operating income increased 25.9% to ¥13,773 million, while net income was ¥6,102 million, and increase of 4.6% compared to the first three quarters of 2011.
“During the first three quarters of the consolidated fiscal year under review, the global economic slowdown became more apparent, mainly given the uncertain outlook of the fiscal crisis in Europe and the sluggish growth in China, India and other emerging economies that had hitherto been the main engines of the world economy,” Toyo officials reorted. “The Japanese economy, meanwhile, continued to experience sluggish grow th in the short-term, with continued deflationary pressure and the recording of a trade deficit, although hopes of an economic recovery have been growing with the advent of a new government.
“Responding to this challenging business environment, Toyo Ink Group sought to bolster sales of mainly advanced products and eco-friendly products, while it focused on cutting costs by replacing raw materials and streamlining the production process,” Toyo added.
Sales in the Printing and Information Business decreased to ¥56,150 million, down 2.1% year on year, but operating income increased to ¥2,440 million, up 144.3% year on year, as a result of cost-cutting measures and higher sales of advanced products.
Demand for offset ink in Japan remained stagnant, reflecting the delayed recovery of the economy as well as a structural recession resulting from the progress of digitization. However, compared with the same period in the previous fiscal year, when business was affected by voluntary advertising rest raints due to the earthquake, demand for commercial and newspaper printing recovered.
Sales of advanced products increased, including products with high UV sensitivity and inks for rotary offset printing, grew. Meanwhile, a slowdown of the economies in China and Southeast Asia resulted in sluggish sales growth, and earnings were
hurt mainly by the escalating price competition and higher labor costs.
Toyo Ink noted that sales in the overall Packaging Business were ¥42,607 million, up 1.5% year on year. Operating income was ¥1,876 million, up 40.4% year on year. Mainstay gravure inks for packaging remained sluggish, although they recovered slightly in the second half. Sales of eco-friendly inks for packaging increased in China and Southeast Asia and demand for gravure inks for construction materials remained strong in North America.