May 3, 2014 12:57 am JST

Toppan Printing's operating profit seen up 10% in fiscal 2014

TOKYO -- Operating profit at Toppan Printing Co. is expected to grow again this fiscal year as improved economic sentiment in Japan lifts demand for commercial printing.

     Group operating profit is seen rising to around 40 billion yen ($386 million), gaining about 10% from the estimated year-earlier figure.

     Toppan will put more energy into proposal-based marketing to seek higher-value commercial printing orders, which should help offset rising paper prices and other cost increases.

     In LCD materials, Toppan is likely to see growth in sales of color filters and other high-margin products for use in small and midsize smartphones.

     It also aims to expand sales of packaging materials, including products containing clear high-barrier films, in which Toppan ranks first by global market share. A new factory completed last month in Gunma Prefecture, northwest of Tokyo, will serve as the core of Toppan's packaging materials production.

     Operating profit for the year ended March 31 likely rose 9% to 35 billion yen, slightly above a company forecast. Demand for printed materials jumped in the lead-up to the start of Japan's NISA individual savings account program and the April 1 consumption tax hike.