Daio Paper seen beating fiscal 2013 view with 66% pretax gain
TOKYO -- Japan's Daio Paper Corp. is expected to report a 66% rise in pretax profit for the just-ended fiscal year, thanks to growing demand for disposable diapers in Russia, China and other overseas markets.
At home, higher prices helped absorb an increase in fuel costs owing to a weak yen.
Pretax profit for the year ended March 31 is seen coming in at around 11 billion yen ($106 million), exceeding a company estimate by 1 billion yen.
Sales likely rose 6% to around 430 billion yen as expected. Adult diapers sold well in Japan. The household paper segment saw sales of processed goods like diapers surpass those of facial tissues and other plain paper products.
Pretax profit looks likely to continue rising this fiscal year, with price hikes helping lift domestic earnings and Chinese diaper sales expected to keep growing.