Japan : Toray Fibers & Textiles overall sales up

Toray Industries Inc announced its consolidated and non-consolidated business results for the six months ended September 30, 2007.
The following summary of the business results that Toray submitted to the Tokyo Stock Exchange is unaudited and for reference only.
Overview of First Half (April 2007 – September 2007):
During the six months under review, despite negative factors such as the impact of the subprime loan crisis in the U.S. and further rise in crude oil prices, the global economy on the whole remained strong.
While the U.S. economy expanded at a modest pace reflecting the decline in housing construction figures among other factors, European economy enjoyed sustained expansion and the Asian economies led by China also continued to grow.
In Japan, the economy saw slow but sustained expansion on the back of the underlying strength of consumer spending while capital investments by businesses suffered a temporary decline.
Under such circumstances, Toray Group advanced its efforts to implement measures under the new mid-term business strategies “Project Innovation TORAY 2010 (IT- 2010)” launched in last October and promoted the expansion of businesses as well as revenues and profits through business structure reform and structural reinforcement.
As a result, consolidated net sales for the first half through September 30, 2007 increased 7.5% year-on-year to ¥ 802.3 billion (US$6,953 million) and operating incomerose 2.6% to ¥44.0 billion (US$382 million).

Ordinary income expanded 3.4% to ¥41.9 billion (US$363 million), while net income declined 18.0% to ¥23.0 billion (US$199 million).
The results marked the fourth consecutive increase in terms of net sales and the second straight rise in first-half operating income and ordinary income.
Fibers and Textiles:
Regarding the Company and its domestic consolidated subsidiaries, nylon fiber performed strongly in particular for ground fabric of air bags and sales of Tetoron polyester fiber increased in uniform and women’s apparel applications.
Transaction amounts at its trading firm subsidiaries also expanded. At the same time, in response to the steep rise in raw materials and fuel prices worldwide, Toray Group made efforts to transfer the cost increase on to the selling price.
Consequently, overall sales of the Company and its domestic consolidated subsidiaries in the sector expanded compared with the same period a year earlier.
Overall sales of overseas consolidated subsidiaries in the segment also rose, led by increases at nylon yarn operation for air bag applications in Thailand, polypropylene spunbond operations in South Korea and polyester filament textile as well as polyester cotton blend textile operations in China.
As a result, overall sales of Fibers and Textiles increased 6.3% to ¥320.9 billion (US$2,781 million) from the same period a year earlier. Operating income also rose 5.7% to ¥10.0 billion (US$87 million) on year.