News Release

Air Water announces Q1 fiscal 2005 results

Aug 09, 2005

  • Earnings and profits up
  • 13.2% increase in net sales, 24.9% in ordinary earnings, 30.4% in net earnings
  • Strong results driven by growth in core industrial gas and chemicals business

Osaka, August 9, 2005 – Air Water Inc. (AWI) today announced its results for the first quarter of fiscal 2005.

In the first quarter of fiscal 2005, AWI earned ¥4,477 million in consolidated operating income (up 9.5% over the same period last year), ¥4,899 million in consolidated ordinary income (up 24.9%) and ¥2,219 million (up 30.4%) in consolidated net income on net sales of ¥83,249 million (up 13.2%). The strong improvement in earnings results was driven by growth in both of the company’s core business sectors: industrial gas and chemicals.

Fiscal 2005 is the second year in the Target 3600 mid-term business plan that takes the company up to fiscal 2006. The company views fiscal 2005 as a crucial year in its efforts to achieve the plan and is working to accelerate growth strategies and to strengthen the management structure of the company. First quarter results by division saw the Industrial Business Group continue to produce industrial gases at high levels for supply to major users – steel, chemicals, shipbuilding, automobiles and glass. The Chemicals Business Group performed robustly in the basic chemical products sector buoyed by stronger prices reflecting the rise in crude prices and tight demand-supply conditions. The Medical Business Group enjoyed robust demand for medical oxygen and medical machinery and equipment driven by synergies stemming from the expansion of the hospital SPD (Supply Processing and Distribution) business. The Energy Business Group also performed favorable results on the back of increased demand for kerosene.

The company provides the following mid-term forecasts for fiscal 2005: ¥8,100 million in ordinary income and ¥3,100 million in net income on net sales of ¥164,000 million. Full-year forecasts for fiscal 2005 are: ¥20,000 million in ordinary income and ¥8,600 million in net income on net sales of ¥350,000 million.

AWI is a leading player in the industrial gas sector and with its many large-scale on-site production plants and aggressive expansion of its business territory has built up a stable business platform that services a wide-spectrum base encompassing everything from bulk to retail customers. AWI is also Japan’s largest supplier of medical gases, while its wide operating base includes LP gas and other energy businesses as well as basic chemicals.

Contacts: S. Kishi and J. Ishino
Public Relations, Air Water Inc.
20-16, Higashi Shinsaibashi 1-chome,
Chuo-ku, Osaka 542-0083
Tel: 06-6252-3966 Fax: 06-6252-3965

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