Toyo Ink poised for another record op profit in fiscal 2014
TOKYO -- A stronger foothold in China and improving margins will put Toyo Ink SC Holdings Co. in position for a record group operating profit of roughly 23 billion yen ($224 million) in fiscal 2014.
The leading ink manufacturer's sales are seen rising 7% to around 290 billion yen in the year through March 2015. For the current fiscal year, the company is closing in on an operating profit of 20 billion yen, up 14% and surpassing its existing record.
In China, where low-cost smartphone makers are expanding production, Toyo Ink has obtained new customers for its materials used in smartphone color filters. Resist ink, magnetic wave shield films, and high-sensitivity UV ink, which raises printing efficiency, are projected to fare well next fiscal year. Higher demand in Southeast Asia for packaging ink will create a tail wind as well.
The firm's operating profit margin will likely improve 0.8 point to 8% in fiscal 2014. Given the rising cost of raw materials such as naphtha, Toyo Ink plans to raise the shipping prices of ink, adhesives and other products starting March 20. It is also stepping up new offerings and working to curb costs by increasing production in local markets.