November 6, 2019
DOWA HOLDINGS CO., LTD.
Dowa Holdings Co., Ltd. (“the Company”) has revised its first half consolidated forecasts for fiscal 2019 (April 1, 2019 to September 30, 2019) and full-year consolidated forecasts for fiscal 2019 (April 1, 2019 to March 31, 2020), which were announced on May 13, 2019, in light of the recent performance. Details are as follows:
1. Revisions of Consolidated Financial Forecasts
(1) First Half Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to September 30, 2019)
(Millions of Yen)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| Previous Forecasts (A) (Announced on May 13, 2019) |
217,000 | 8,500 | 10,800 | 7,500 | 126.72 |
| Revised Forecasts (B) | 230,700 | 11,070 | 12,450 | 7,900 | 133.48 |
| Change (B－A) | 13,700 | 2,570 | 1,650 | 400 | |
| Percentage Change (%) | 6.3 | 30.2 | 15.3 | 5.3 | |
|
(Ref.) Previous Fiscal Year First Half Results |
221,828 | 9,367 | 12,848 | 8,889 | 150.20 |
(2) Full-year Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)
(Millions of Yen)
| Net Sales | Operating Income | Ordinary Income | Profit attributable to owners of parent |
Net Income |
|
|---|---|---|---|---|---|
| Previous Forecasts (A) (Announced on May 13, 2019) |
455,000 | 24,500 | 30,000 | 20,000 | 337.92 |
| Revised Forecasts (B) | 480,000 | 24,500 | 30,000 | 20,000 | 337.92 |
| Change (B－A) | 25,000 | - | - | - | |
| Percentage Change (%) | 5.5 | - | - | - | |
|
(Ref.) Previous Fiscal Year Results |
452,928 | 18,671 | 24,309 | 14,986 | 253.22 |
2. Reasons for the Revisions
In the business environment of the Dowa Group during the first six months of the fiscal year ending March 31, 2020, demand for automotive and electronic components remained lower than the previous forecasts. Meanwhile, demand increased for products related to new energy in China. In the foreign exchange market, the yen remained strong. In terms of metal prices, those of gold and silver increased while those of zinc and copper were relatively low.
Given such background, net sales of waste treatment in the Environmental Management & Recycling segment are expected to exceed the previous forecasts. The Nonferrous Metals segment is expected to see an increase in precious metal prices and a decrease in loss due to the lowering the book value of zinc inventory. In addition, net sales in the Metal Processing and Heat Treatment segments are likely to fall from the previous forecasts.
As a result, the consolidated financial results of the Dowa Group are expected to exceed the previous forecasts.
Moreover, the Group has revised the previous full-year forecasts for the fiscal year under review, taking into account the latest business environments.
Assumptions on the financial forecasts are as follows:
|
Previous Forecasts |
First Half Average
|
Revised Forecasts (Assumptions for the Second Half Average) |
|
|---|---|---|---|
| Exchange Rates (Yen per US$) |
110.0 | 108.6 | 108.0 |
| Copper (US$ per ton) | 6,400 | 5,956 | 5,700 |
| Zinc (US$ per ton) | 2,800 | 2,554 | 2,500 |
| Indium (US$ per kg) | 180 | 164 | 150 |
3. Consolidated Financial Forecasts by Segment
(1) First Half Consolidated Forecasts for Fiscal 2019 (April 1, 2019 to September 30, 2019)
(Billions of Yen)
| Previous Forecasts | Revised Forecasts | Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | |
| Environmental Management & Recycling | 50.8 | 2.5 | 2.4 | 53.5 | 3.4 | 3.1 | 2.7 | 0.9 | 0.7 |
| Nonferrous Metals | 100.3 | 1.5 | 3.3 | 107.8 | 3.4 | 4.6 | 7.5 | 1.9 | 1.3 |
| Electronics Materials | 32.2 | 0.2 | 0.9 | 43.7 | 0.6 | 1.2 | 11.5 | 0.4 | 0.3 |
| Metal Processing | 44.3 | 2.8 | 2.9 | 41.5 | 2.4 | 2.5 | (2.7) | (0.3) | (0.3) |
| Heat Treatment | 14.5 | 1.0 | 1.0 | 14.0 | 0.6 | 0.5 | (0.4) | (0.3) | (0.4) |
| Other / Elimination | (25.1) | 0.5 | 0.3 | (29.8) | 0.4 | 0.2 | (4.7) | (0.0) | (0.0) |
| Total | 217.0 | 8.5 | 10.8 | 230.7 | 11.0 | 12.4 | 13.7 | 2.5 | 1.6 |
(2) Consolidated Full-year Forecasts for Fiscal 2019 (April 1, 2019 to March 31, 2020)
(Billions of Yen)
| Previous Forecasts | Revised Forecasts | Changes | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | Net Sales | Operating Income | Ordinary Income | |
| Environmental Management & Recycling | 106.7 | 6.6 | 6.7 | 112.3 | 6.0 | 6.2 | 5.6 | (0.6) | (0.5) |
| Nonferrous Metals | 209.3 | 5.9 | 9.5 | 218.9 | 8.6 | 12.4 | 9.6 | 2.7 | 2.9 |
| Electronics Materials | 65.6 | 0.7 | 2.6 | 90.8 | 1.0 | 2.3 | 25.2 | 0.3 | (0.3) |
| Metal Processing | 91.7 | 6.6 | 6.8 | 87.2 | 5.1 | 5.3 | (4.5) | (1.5) | (1.5) |
| Heat Treatment | 32.4 | 3.3 | 3.2 | 29.8 | 2.5 | 2.5 | (2.6) | (0.8) | (0.7) |
| Other / Elimination | (50.7) | 1.4 | 1.2 | (59.0) | 1.3 | 1.3 | (8.3) | (0.1) | 0 |
| Total | 455.0 | 24.5 | 30.0 | 480.0 | 24.5 | 30.0 | 25.0 | 0 | 0 |
(Notes)
The above values have been rounded down to the nearest second decimal place. Therefore, the total values of some segments may not be the same as the sum of the detailed values in each segment.
The forecasts included in this document are based on the information available to the Company at the time of the announcement and certain assumptions considered reasonable. Actual results may differ materially due to a range of factors.
