High costs hit Toray
06/08/2008
Japanese textile manufacturer Toray Industries said on August 6 that it had revised downward its profit estimates for the current fiscal year, ending March 2009, because of increases in fuel and raw materials prices and slower demand for its products.
The company lowered its estimated operating profit from around $875 million to around $690 million, although it kept its estimate for total sales for the year unchanged at $15.6 billion.
Toray had hoped a strategy of passing on some of its increased costs in product prices, and of focusing on products with a higher added value would be enough to offset the rise in raw materials costs, but it has now decided that this will not be enough. It had expected cost-increases of around $140 million, but now says the increase will be close to four times that amount.
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