TEIJIN SEES BREAK-EVEN YEAR
Byline: Koji Hirano
TOKYO — Fibers producer Teijin Ltd. said it expects to report break-even results for its recently concluded fiscal year but projects a return to profitability next year, as a result of planned cost-cutting moves and expansion.
The Tokyo-based company said it expects sales for the fiscal year ended March 31 to come in at $7.1 billion, up 19.1 percent from $5.96 billion last year. Last year, the firm reported net income of $124.8 million.
Fiber and textile sales are expected to come in at $3.9 billion, with fiber operating income at $57.7 million.
(All dollar figures are converted from the Japanese yen at current exchange rates.)
In fiscal 2002, which ends March 31, 2003, the company expects to earn $53.8 million on sales of $7.3 billion. Fiber and textile sales are expected to come in at $4.1 billion, with operating income at $107.7 million.
The company expects an increase in sales and profit of aramid fibers, used primarily in industrial settings. Additionally, restructuring in Japanese and Mexican polyester fiber subsidiaries, cost-cutting in the carbon-fiber business and withdrawal from deficit fiber businesses, acetate fiber and rayon fiber, will make for improvement in profitability, the company projected.