Taiheiyo sees pretax profit rising, Japan

Taiheiyo sees pretax profit rising, Japan
Published: 08 June 2005

Taiheiyo Cement Corp expect group pretax profits to rise in the year ending March 31, 2006, thanks to price hikes and streamlining efforts. 

Taiheiyo Cement projects a 7% increase in pretax profit to 41bn yen. Coal prices are expected to continue climbing about 20% this fiscal year, but the firm plans to offset this by boosting the price of cement by about 230 yen per ton. The company’s US and other overseas operations as well as the ceramic business will also likely deliver strong results. But on a net basis, Taiheiyo Cement expects to sink into the red to the tune of 1bn yen. 

Meanwhile, Sumitomo Osaka Cement forecasts 23% growth in pretax profit to 12bn yen. The cement business is expected to lift profit by 6bn yen through a per-ton price hike of around 180 yen and cost-cutting efforts. In addition, the segment producing optic electronics and other new materials will likely swing to the black. 

However, the firm expects to record valuation losses on limestone mining and other properties, and this will weigh heavily on its bottom line. Net profit is seen plunging 82% to 1bn yen.