August  05,  2025, Tokyo, Japan—Tosoh Corporation is pleased to announce its first-quarter consolidated results for its 2026 fiscal year, from April 1, 2025, to June 30, 2025. 

The Company’s net sales decreased ¥7.7 billion (3.1%) year-on-year to ¥245.1 billion (US$1.7 billion), during the first quarter the first three months of the Company’s 2026 fiscal year which extends from April 1, 2025, to March 31, 2026. This decrease was attributable to lower naphtha prices and the progressively stronger yen, as well as a decrease in shipment volume resulting from reduced production volume during scheduled maintenance at the Nanyo Complex.

The Company's consolidated operating income decreased ¥3.7 billion (18.9%) year-on-year to ¥16.1 billion (US$111.2 million), due to unfavorable inventory fluctuations and increased fixed costs, despite sales growth in the Engineering Group and improved terms of trade backed by lower prices in raw materials and fuels, including naphtha and coal. Non-operating income decreased ¥9.5 billion year-on-year due to deterioration in foreign exchange gains and losses.

Ordinary income decreased ¥13.3 billion (48.5%) year-on-year to ¥14.1 billion (US$97.4 million).

Quarterly net income attributable to owners of parent decreased ¥9.7 billion (59.8%) year-on-year to ¥6.5 billion (US$45.2 million).

During the period under review, the United States saw steady growth where the labor market remained firm. In Europe, the economy recovered moderately as inflation eased, while in China, there were signs of improvement supported by policy measures. Due to the impact of the United States’ uncertain tariff policies, the ongoing real estate recession and deflation in China, both the Japanese and overseas economies faced an uncertain outlook and continued to experience challenging conditions.

Results by business segment are as follows:

Petrochemical

Petrochemical Group net sales decreased ¥5.4 billion (10.8%) year-on-year to ¥45.1 billion (US$311.9 million). Operating income decreased ¥3.3 billion (98.6%) year-on-year to ¥0 billion (US$0.3 million), due to unfavorable inventory fluctuations and the effect of the lower of cost or market method, despite improved terms of trade for polyethylene resin.

Ethylene, propylene, and cumene production increased due to the Yokkaichi Complex not undergoing scheduled maintenance this year. However, ethylene shipments decreased owing to lower demand within the complex. Cumene shipments also decreased due to lower demand. Moreover, selling prices for ethylene and propylene declined due to lower naphtha prices. Selling prices for cumene also declined due to deteriorating market conditions overseas.

Polyethylene resin shipments decreased due to slow recovery in domestic demand, but selling prices increased. Exports also decreased due to a downturn in overseas market conditions for EVA resin. Chloroprene rubber shipments decreased due to sluggish demand in some regions, but selling prices increased.

Chlor-alkali

Chlor-alkali Group net sales decreased ¥9.7 billion (10.5%) year-on-year to ¥82.1 billion (US$567.7 million). Operating income decreased ¥3.2 billion year-on-year, resulting in an operating loss of ¥1.9 billion (US$13.0 million). This was due to unfavorable inventory fluctuations and a decrease in shipments, despite improved terms of trade for caustic soda and MDI backed by lower prices in raw materials and fuels.

Caustic soda shipments decreased due to lower production volume from scheduled maintenance at the Nanyo Complex, but export prices increased as overseas market conditions improved. Vinyl chloride monomer shipments also decreased due to lower production volume from scheduled maintenance at the Nanyo Complex. Polyvinyl chloride (PVC) resin shipments were unchanged year-on-year. Moreover, selling prices of PVC products for overseas markets declined due to weaker overseas market conditions.

Cement shipments decreased due to weak demand, despite an increase in domestic selling prices.

Methylene diphenyl diisocyanate (MDI) shipments decreased due to lower production volume during scheduled maintenance at the Nanyo Complex. Market conditions for hexamethylene diisocyanate (HDI) hardeners declined and shipments decreased, reflecting sluggish global demand.

Specialty

Specialty Group net sales increased ¥1.3billion (1.9%) year-on-year to ¥67.7 billion (US$468.4 million). Operating income decreased ¥0.5 billion (5.2%) year-on-year to ¥9.5 billion (US$65.7 million) due to unfavorable inventory fluctuations and increased fixed costs, despite increased shipments of ethyleneamine and other products.

Ethyleneamine shipments increased in Asia, but selling prices declined due to weaker overseas market conditions and the impact of exchange rates.

Among separation-related products, shipments of liquid chromatography packing media for Europe decreased, while shipments for the United States and Asia increased. In diagnostic-related products, shipments of in vitro diagnostic pharmaceuticals decreased, mainly to China.

High-silica zeolite (HSZ) shipments for automotive applications decreased in both the domestic and European markets. Shipments of zirconia decreased for dental applications in North America and decorative applications in Europe, but selling prices increased due to differences in the product mix. Silica glass shipments for LCD (liquid crystal display) applications increased as the reduction in production volume caused by an accident in the same period of the previous year was resolved. Shipments for semiconductor applications also increased for North America and Taiwan. Sputtering target shipments increased overseas, but selling prices declined because of such factors as changes in the product mix. Electrolytic manganese dioxide shipments increased in Europe but decreased in Asia, resulting in an overall decline in shipments.

Engineering

Engineering Group net sales increased ¥6.2 billion (18.9%) year-on-year to ¥39.1 billion (US$270.2 million). Operating income increased ¥2.9 billion (62.1%) year-on-year to ¥7.6 billion (US$52.3 million).

The Group’s water treatment engineering business increased its net sales as a result of steady progress in the construction of semiconductor-related plant projects ordered in previous years in the electronics industry in Japan and Taiwan. In addition, favorable sales of solutions, such as equipment ownership and maintenance services, contributed to net sales.

Sales at the Engineering Group’s construction subsidiaries remained essentially unchanged from the previous year.

Other

Other net sales decreased ¥0.1 billion (1.2%) year-on-year to ¥11.1 billion (US$77.0 million), whereas other operating income increased ¥0.3 billion (50.1%) year-on-year to ¥0.9 billion (US$5.9 million). Sales decreased at various operating companies, including transportation and warehousing, inspection and analysis, and information processing.

Source: Tosoh