Jun. 18, 2020
Toyo Engineering Corporation (hereafter “TOYO”) hereby announce the difference between the consolidated financial results and forecast for the fiscal year ending March 31, 2020. Further, TOYO recognized non-operating income and expenses on consolidated financial results for the fiscal year ending March 31,2020.
1. Difference between the consolidated financial results and forecasts
(1) Difference between the consolidated financial results and forecasts for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Note) Upon calculation of "Net income per share", the number of class A preferred stocks which were issued in March 2019 is included.
(2) Major reasons of the difference
Net sales was JYE 219 billion. Mainly due to the impact that progress achieved at year-end was lower than expected for some projects, the result was a decrease of JYE 20.9 billion from previous forecast.
Operating income was JYE 1.8 billion. The result was a decrease of JYE 1.1 billion from previous forecast. There was an increase of construction cost at an ethylene project in the USA, while seeing such positive factors as improvement of the profitability in other projects and reduction of general administrative, selling expenses. There was also an increase of project-related cost due to the impact of delays in some projects with the outbreak and spread of COVID-19, Ordinary income was JYE 2.4 billion. The result was a decrease of JYE 0.5 billion from previous forecast after an increase of JYE 0.5 billion in non-operating income and expenses mainly due to improvement of equity in earnings of affiliates in Brazil.
Although improvement of equity in earnings of affiliates in Brazil enhances ordinary income by 1.4 billion Yen and foreign exchanges losses incurred 1.9 billion Yen due to fluctuations of foreign exchange rate of emerging market, ordinary income was recognized 2.4 billion Yen, decreasing 0.5 billion from the forecast.
Finally profit attributable to owners of parents was JYE 1.6 billion. The result was a decrease of JYE 0.3 billion from previous forecast after extraordinary income of JYE 1.9 billion such as gain on sale of owned shares and income taxes of JYE 2.7 billion such as income taxes born by some overseas subsidiaries and reversal of deferred tax assets.
2. Recognition of non-operating incomes and expenses
(1) Equity in earnings of affiliates
JYE 1.4 billion was recognized mainly due to improvement of the profitability in some projects implemented affiliates in Brazil and refund of taxes which were paid by them in previous year. (For 3rd quarter of this fiscal year, JYE 0.2 billion was recognized as equity in losses of affiliates.)
(2) Foreign exchange losses
JYE 1.9 billion was recognized mainly due to the depreciation of local currencies in some emerging countries. (For 3rd quarter of this fiscal year, JYE 1 billion was recognized as foreign exchange losses.)
1. Difference between the consolidated financial results and forecasts
(1) Difference between the consolidated financial results and forecasts for the fiscal year ending March 31, 2020 (from April 1, 2019 to March 31, 2020)
Note) Upon calculation of "Net income per share", the number of class A preferred stocks which were issued in March 2019 is included.
(2) Major reasons of the difference
Net sales was JYE 219 billion. Mainly due to the impact that progress achieved at year-end was lower than expected for some projects, the result was a decrease of JYE 20.9 billion from previous forecast.
Operating income was JYE 1.8 billion. The result was a decrease of JYE 1.1 billion from previous forecast. There was an increase of construction cost at an ethylene project in the USA, while seeing such positive factors as improvement of the profitability in other projects and reduction of general administrative, selling expenses. There was also an increase of project-related cost due to the impact of delays in some projects with the outbreak and spread of COVID-19, Ordinary income was JYE 2.4 billion. The result was a decrease of JYE 0.5 billion from previous forecast after an increase of JYE 0.5 billion in non-operating income and expenses mainly due to improvement of equity in earnings of affiliates in Brazil.
Although improvement of equity in earnings of affiliates in Brazil enhances ordinary income by 1.4 billion Yen and foreign exchanges losses incurred 1.9 billion Yen due to fluctuations of foreign exchange rate of emerging market, ordinary income was recognized 2.4 billion Yen, decreasing 0.5 billion from the forecast.
Finally profit attributable to owners of parents was JYE 1.6 billion. The result was a decrease of JYE 0.3 billion from previous forecast after extraordinary income of JYE 1.9 billion such as gain on sale of owned shares and income taxes of JYE 2.7 billion such as income taxes born by some overseas subsidiaries and reversal of deferred tax assets.
2. Recognition of non-operating incomes and expenses
(1) Equity in earnings of affiliates
JYE 1.4 billion was recognized mainly due to improvement of the profitability in some projects implemented affiliates in Brazil and refund of taxes which were paid by them in previous year. (For 3rd quarter of this fiscal year, JYE 0.2 billion was recognized as equity in losses of affiliates.)
(2) Foreign exchange losses
JYE 1.9 billion was recognized mainly due to the depreciation of local currencies in some emerging countries. (For 3rd quarter of this fiscal year, JYE 1 billion was recognized as foreign exchange losses.)