Southern Manufacturing

Teijin Reports Significant Growth for 2004

07 February 2005

Teijin has reported significant growth in sales and operating income for its synthetic fibres business during the third quarter of 2004.

In the three months to Dec. 31, 2004 the Japanese corporation's synthetic fibres business had sales of ¥70.8 billion, up by 15.9%, and operating income of ¥3.1 billion, an increase of 46.1% over the corresponding period a year earlier.

Teijin stated that its polyester textile fibres business faced severe operating conditions because of the price increases of raw materials, as well as weak consumption in the Japanese market and unfavourable results from its joint ventures in North America.

Teijin stated that in the area of industrial fibres, sales of aramid fibres were expanding steadily due to strong demand for ballistic applications and for use in friction materials.

The carbon fibre business was also steadily improving, reflecting an increase in demand in Europe for industrial applications and efforts to improve profitability by increasing productivity, all of which enabled this business to ensure stable profitability since the second quarter of the last fiscal year.

The outlook for the future looks positive with the Twaron business expected to grow steadily while severe conditions of the textile fibres field are predicted by high raw materials prices in the Synthetic Fibres segment. In addition, we expect the performance of the plastics category is good in the Films and Plastics segment. Teijin forecast consolidated net sales of ¥910.0 billion, up ¥10.0 billion, operating income of ¥49.0 billion.

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