High raw material costs affect Teijin earnings - sportstextiles: Lea SportsTextiles

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High raw material costs affect Teijin earnings

07/11/2018
Japanese fibre manufacturer Teijin has announced sales of almost $3.9 billion in the first half of its current financial year, the six months to September 30, 2018. This figure represents growth of 8.6% compared to the first six months of the group’s previous financial year. However, operating income fell by 3.5% to $320 million.

Teijin’s materials business contributed $2.9 billion to the total. The group said this part of the business achieved higher sales in the six-month period, but lower earnings, which it attributed to “the impact of persistently high raw materials prices”, plus the increased cost of the launch of new products.

It highlighted “firm” sales of its aramid fibres, including in protective clothing as an important contributor to the performance of its materials business.

Sales in the polyester fibres and apparel segment were “favourable”, Teijin said, but it was here it noticed the greatest impact of high raw materials costs.

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