Home> Press Release> Press Release (2005)> Summary of FY2004 Third Quarter Consolidated Financial Results and Business Performance

Summary of FY2004 Third Quarter Consolidated Financial Results and Business PerformancePrint Page

February 4, 2005

Summary of FY2004 Third Quarter Consolidated Financial Results and Business Performance

Name of listed company:
ZEON Corporation
(Code: 4205: First Section, Tokyo Stock Exchangeand Osaka Securities Exchange)
URL
http://www.zeon.co.jp/
Representative President & CEO
Naozumi Furukawa
Contact
Managing Director, Finance & Accounting Dept. Yoichi Mishima
Tel: +81-3-3216-1785

1.Notes Regarding the Compilation of Quarterly Results
(1)Adoption of simplified method of accounting: Applicable
Content: Method of depreciation and amortization, calculation standards for corporate taxes, etc.
(2)Change in accounting method in current consolidated fiscal year (fiscal 2004): Applicable
Content: The method for depreciation and amortization of fixed assets, which in the past was mainly based on the straight line method, was changed to one primarily based on the fixed percentage method from the first quarter of the current fiscal year.
(3)Change in scope of consolidation or application of equity method for subsidiaries: Not applicable.
Content: One company added and two companies removed under consolidation, and no changes under equity method.

2.Summary of Financial Results for FY2004 Third Quarter (April 1, 2004 to December 31, 2004)
(1) Status Report on Consolidated Management Results

(Rounded to the nearest million yen)

  Net Sales Operating Income Ordinary Income Quarterly
Net Income
FY2004 Q3 ¥
(million)

171,554
Change (%)
7.0
¥
(million)

13,083
Change (%)
¥
(million)

13,635
Change (%)
¥
(million)

5,596
Change (%)
FY2003 Q3 160,385 4.7
(Reference)
FY2003
213,297 1.1 17,897 38.3 13,712 40.0 4,588 50.4
  Quarterly Net Income Per Share Fully Diluted Quarterly Net Income Per Share
FY2004 Q3 Yen
23.20
Yen
FY2003 Q3 Yen
Yen
(Reference)
FY2003
Yen
18.74
Yen
Notes: Percentage change for net sales shows increase or decrease from
  1. the same quarter in the previous fiscal year.
  2. With regard to items other than net sales, figures on actual results for FY2003 third quarter and percentage change from the same quarter in the previous year have not been provided because the Company began disclosing the relevant figures from the quarter under review.

 

Qualitative Information Related to Status Report on Consolidated Management Results

Net sales for FY2004 third quarter increased by ¥11,169 million, or 7.0%, from the same quarter last year.
In our elastomer materials business, a price hike in raw materials created a severe challenge. To secure stable earnings, we concentrated on cutting costs and revising prices to improve profitability. For our synthetic rubbers business, domestic sales of general purpose rubber were supported by strong production by tire makers and exceeded the level of the same quarter of the previous year. In the chemicals business, thermoplastic elastomer SIS continued to demonstrate favorable sales supported primarily by exports.
In our specialty materials business, ZeonorFilm substantially increased sales for high-performance resin (cyclo-olefin polymer). At the same time, sales of both ZEONOR and ZEONEX considerably increased compared with the same quarter of the previous fiscal year, which was attributable mainly to favorable demand for plastic lenses and prisms for mobile phone cameras and digital cameras. In the information and electronics materials business, particularly our main product, electronics materials, major semiconductor manufacturers across the world are expanding their use of our etching gas (ZEORORA ZFL-58), boosting electronic materials sales considerably compared with the same quarter of the previous fiscal year.
Sales in our other businesses fell below the levels of the same quarter in the previous fiscal year, mainly due to an operational transfer in the environmental materials business.
ZEON Chemicals L.P. (“ZCLP”), a wholly owned subsidiary of ZEON Corporation, located in Kentucky, U.S., announced on January 12th (Japan time: January 13th) that ZCLP has entered into a plea agreement with the U.S. Department of Justice (“DOJ”) with respect to the DOJ’s ongoing investigation into acrylonitrile butadiene rubber (NBR). ZCLP, under the terms of the agreement, has agreed to pay a fine of 10.5 million US dollars (approximately ¥1.145 million) to resolve allegations that it engaged in anti-competitive activity. As a result, a fine in accordance with the settlement was appropriated as an extraordinary loss in the consolidated financial statement for the third quarter.

(2) Changes in Consolidated Financial Condition

  Total Assets Total Shareholders’ Equity Equity Ratio Shareholders’ Equity Per Share
FY2004 Q3 ¥ (million)
247,353
¥ (million)
75,536
%
30.5
Yen
313.36
FY2003 Q3
(Reference)
FY2003
222,254 71,575 32.2 295.47
Note:With regard to changes in financial condition, figures for FY2003 third quarter have not been provided because the Company began disclosing the relevant figures from the first quarter of this fiscal year.

Qualitative Information Related to Changes in Consolidated Financial Condition

Total assets amounted to ¥247,353 million, an increase of ¥25,099 million from the end of the previous consolidated fiscal year, mainly due to increased sales, and the fact that the last days of the third quarter of fiscal year fell on holidays.
Shareholders’ equity amounted to ¥75,536 million, an increase of ¥3,960 million from the end of the previous fiscal year, due mainly to the appropriation of net income.
On May 17, 2004, the Company repurchased 1,000,000 shares of its own stock for ¥737 million through the ToSTnet-2 closing price transaction mechanism on the Tokyo Stock Exchange. In addition, there was a ¥621 million increase in investment securities and a ¥388 million increase in gain on valuation of other securities holdings compared with the end of the previous consolidated fiscal year.

Reference
Forecast of Consolidated Financial Results for FY2004 (April 1, 2004 to March 31, 2005)

The Company expects the consolidated financial results through the fiscal year (April 1, 2004 to March 31, 2005) to be the same as the forecast released on January 13, 2005.

mailFor further information
  • Zeon Corporation,
    Department of Corporate Communications
  • Tel: +81-3-3216-2747
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