Taiheiyo Cement Corporation saw turnover ease by 0.8% to Y72,686m (EUR 6417m) in the year to the 31st of March, with the EBITDA being off by 1.7% at Y88,524m (EUR 651m). However, after taking into account a 10.8% drop in the depreciation and amortisation charge to Y40,399m (EUR 297m), the trading profit did rise by 7.4% to Y48,185m (EUR 354m) and the running profit before tax emerged 8.9% higher at Y38,264m (EUR 281m). An EBITDA margin of 10.1% and a trading margin of 5.5% compare unfavourably within the industry, but in two years time the group aims to increase the trading margin to 8.6% overall and from 6.5% to 9.7% for the cement activities alone.
Cement accounted for 57.5% of group turnover and for 67.3% of the trading profit. Group cement deliveries were 1.6% lower at 38.5Mt, reflecting a 5.7% drop in domestic deliveries to 20.4Mt, including volume marketed for third parties. That represents a market share of just under 38% in a Japanese market that expected to decline gently, or by around 2%, both this year and next. The domestic production capacity fell from 25Mt to 23.4Mt, mainly because of the Japanese Cement association calculation method that uses the maximum hourly production as a base. Exports from Japan, on the other hand, rose by 0.3Mt to 4Mt and sales by the overseas subsidiaries were some 12% higher at 14.1Mt. Group ready-mixed concrete deliveries were 0.3Mm³ lower at 9.7Mm³, while aggregates shipments were 0.8Mt down to 42Mt.