News Release

Air Water announces FY2005 full-year results

May 17, 2006

  • Income and profits rise for third straight year
  • Net sales ¥376.3 billion – 18.3% up y-o-y
  • Ordinary income ¥21.9 billion – 21.3% up y-o-y
  • Net profit ¥9.6 billion – 23.6% up y-o-y
  • Strong industrial gas and chemicals performance drives Target 3600 forward

Osaka, May 17, 2006 – Air Water Inc. (AWI) today announced its full-year (April 1 – March 31) financial results for fiscal 2005, ending March 31 2006. On the back of continuing high levels of production and supply of industrial gases and basic chemicals for the industrial market and benefiting from price revisions, the Company posted a net profit for the year of ¥9.64 billion, a 23.6% increase over ¥7.80 billion last year, operating income of ¥20.41 billion, 12.6% up on ¥18.13 billion, and ordinary income of ¥21.87 billion, 21.3% up on ¥18.03 billion, on net sales of ¥376.3 billion, 18.3% up on ¥317.96 billion. Net sales, operating income, ordinary income and net profit all showed double-digit growth to hit record highs as the Company posted increases in both income and profits for the third consecutive fiscal year.

Unit: million yen

2006 FY 2005 FY Change
Net sales 376,306 317,965 + 18.3%
Operating income 20,412 18,134 + 12.6%
Ordinary income 21,871 18,030 + 21.3%
Net profit 9,647 7,803 + 23.6%

The Company’s results for fiscal 2005 stem were driven principally by its Industrial and Chemical Business groups. The Industrial Business group’s strong showing can be attributed principally to: (1) Very robust supplies of oxygen, nitrogen, argon and other industrial gases due to continuing high operating levels among manufacturers using blast furnaces and to brisk production levels in the chemical, automobile, ship-building and other manufacturing sectors; (2) Healthy orders for plant and equipment related to industrial gases and pipe-laying works in general throughout the industrial community where capital spending sentiment is on a high level. The Company’s Chemical Business group also delivered high levels of production and brisk shipments of crude benzene and other basic chemical products as well as of tar distillates on the back of high oil prices and tight market conditions.

Reflecting its strong performance in fiscal 2005 and as announced on April 28 the Company expects to pay a full-year dividend of ¥17 yen, an increase of ¥3 over last year.

Looking ahead to the 2006 fiscal year (ending March 31 2007), in its Industrial business the Company expects its on-site gas supplies in the steel, semi-conductor, liquid crystal and special glass sectors as well as its gas deliveries to the chemical, automobile and ship-building sectors to continue to move forward briskly as forecasts call for continued growth in the national economy. In its Chemical business, the Company expects that demand for its basic chemical products and tar distillates will remain strong as high oil prices continue and expects demand for new fine chemical products for use in electrical and electronic materials to grow. In its Medical business, fiscal 2006 marks the fifth year since the Company started its Supply, Processing and Distribution services business. The number of SPD service sites at large hospitals is expanding and growth is on a scale that will soon see SPD services form the core of the Company’s Medical business.

Fiscal 2006 marks the final year of the Company’s Target 3600 mid-term business plan and the Company aims to make further progress in the implementation and to increase the effectiveness of the plan. As it works toward this goal, the Company will also strive to rationalize its operations to cover cost rises stemming from high oil prices and intends to introduce price revisions where necessary.

CONTACT: S. Kishi and J. Ishino
Public Relations, Air Water Inc.
20-16, Higashi Shinsaibashi 1-chome,
Chuo-ku, Osaka 542-0083
TEL: 06-6252-5411 / FAX: 06-6252-3965

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