Toray Industries, Inc.

For the first quarter ended June 30, 2023, consolidated revenue decreased 4.6% year over year to ¥578.1 billion, operating income decreased 19.2% to ¥21.9 billion, and profit decreased 65.1% to ¥13.9 billion. Special items worsened by ¥24.9 billion to negative ¥1.1 billion. Total assets were ¥3,347.4 billion, total liabilities were ¥1,599.8 billion, total equity was ¥1,747.6 billion, owners' equity was ¥1,643.3 billion, interest-bearing liabilities were ¥974.7 billion, and the D/E ratio was 0.59. Free cash flow was positive at ¥12.5 billion. By segment, fibers and textiles revenue was ¥223.8 billion with core operating income of ¥10.9 billion; performance chemicals revenue was ¥214.8 billion with core operating income of ¥7.4 billion; carbon fiber composite materials revenue was ¥68.7 billion with core operating profit of ¥2.7 billion; environment engineering revenue was ¥56.0 billion with core operating income of ¥6.2 billion; and life science revenue was ¥11.3 billion with core operating income of negative ¥0.5 billion. For FY ending March 2024, Toray left unchanged its full-year forecast of revenue of ¥2,560 billion, core operating income of ¥120 billion, and profit of ¥76 billion, based on an assumed exchange rate of ¥135 per U.S. dollar.

Masahiko Okamoto emphasized that the quarter reflected a mixed business environment, with some businesses recovering and others still under pressure. He pointed to gradual recovery in the global economy but stressed that inflation, high interest rates in the U.S. and Europe, and a sluggish real estate market in China will keep the pace slow. His tone was cautious, but he signaled confidence by keeping the full-year outlook unchanged.

The financial update highlighted lower sales and profit in the quarter, but also positive cash generation and a solid balance sheet. He cited ¥578.1 billion of revenue, ¥21.9 billion of operating income, ¥13.9 billion of profit, ¥12.5 billion of free cash flow, and a 0.59 D/E ratio. Capital expenditures rose ¥7.5 billion to ¥23.5 billion, while depreciation and amortization were ¥31.9 billion and R&D spending was ¥15.5 billion; he also noted that full-year guidance remains unchanged at ¥2,560 billion revenue, ¥120 billion core operating income, and ¥76 billion profit.

There was no Q&A content in the transcript provided, so no analyst concerns or follow-up answers were disclosed. The main management commentary instead focused on the quarter’s segment performance and the unchanged full-year outlook despite weak areas such as performance chemicals and life science.