Takiron CI ＜4215＞ announced consolidated financial results for the fiscal year ending 2024/3 on the 8th. Net sales decreased 5.6% from the previous fiscal year to 137.581 billion yen, operating profit increased 7.5% to 6.228 billion yen, ordinary profit increased 9.8% to 6.501 billion yen, and net income attributable to parent company shareholders increased 107.4% to 5.102 billion yen.

Sales in the construction materials business segment decreased 0.9% from the same period last year to 44.402 billion yen, and operating profit increased 20.1% to 2,983 billion yen. In the housing and building materials business, there was also an expansion in signage demand due to increased sales due to product price increases associated with rising raw material prices and logistics costs, etc., but in addition to a decrease in the number of newly built housing starts, it was affected by a decline in capital investment in the livestock industry due to high construction materials and feed prices, and sales to residential and non-residential properties did not recover, and sales declined throughout the business. In the floor/building business, although recovery of building materials in Europe has been delayed, North America gradually showed a recovery trend in addition to the strong Australian market. In addition to the fact that flooring materials in the domestic condominium renovation market remained steady, there was also an effect of product price increases, leading to an increase in overall business sales.

Sales in the environmental materials business segment decreased 1.4% to 54.039 billion yen, and operating profit increased 518.6% to 1,884 billion yen. In the agricultural business, sales declined because producers continued to refrain from buying due to sluggish fertilizer market conditions and soaring prices of various agricultural materials, and shipments of house-related materials also remained sluggish. In the infrastructure materials business, demand for Howell pipes recovered, and rotational molding products and civil engineering sheets and shields maintained strong sales due to strong demand, so overall business sales increased.

Sales in the high-performance materials business segment decreased 9.9% from the same period to 20.480 billion yen, and operating profit fell 33.5% to 1,731 billion yen. In the high-performance materials business, demand for memory, starting with smartphones, recovered, and nanomaterials for electronic circuit boards surpassed the previous year, but semiconductor manufacturers continued to suppress capital investment, and industrial plates and engineering materials for manufacturing equipment remained sluggish. Also, micromotors, which continued to be affected by inventory adjustments for consumer equipment, etc., fell below the previous year, and overall business sales declined.

Sales in the functional film business segment decreased 20.6% from the same period to 17.82 billion yen, and operating losses were 304 million yen (profit of 126 million yen in the same period last year). The packaging materials business entered the fourth quarter and showed signs of recovery, but production and sales in North America and South America fell to a low level due to prolonged distribution inventory adjustments in the main North American market, and shrink film sales declined drastically. Zipper tape also remained sluggish both domestically and overseas, leading to a decline in sales.

Regarding the consolidated earnings forecast for the full year ending 2025/3, we expect sales to increase 5.4% from the previous fiscal year to 145.00 billion yen, operating profit up 22.0% to 7.60 billion yen, ordinary profit up 16.9% to 7.60 billion yen, and net income attributable to parent company shareholders to increase 9.7% to 5.60 billion yen.