Taiheiyo Cement’s firm outlook, Japan

Taiheiyo Cement’s firm outlook, Japan
Published: 15 August 2011

Taiheiyo Cement reported a smaller-than-expected 1Q loss and projected its operating profit will rise 64% from a year earlier to JPY27bn (US$351m) for the full year through March. Credit Suisse says the forecast tops its own estimate of a full-year operating profit of JPY24.4bn. "We attribute this to management’s greater optimism concerning recovery at overseas operations," analyst Jun Yamaguchi writes in a client note. But he adds that the full-year forecast seems to rely heavily on the FY 2H as the company banks on an average per-ton price hike of around Y350 in the latter half of the FY.