Teijin REPORTS Q1 OPERATING PROFIT GROWTH DESPITE SALES DECLINE

TOKYO, Aug 04 (Pulse News Wire) – Teijin Limited (3401.T) reported a Q1 operating profit increase of 45%, reaching ¥123 billion, despite a sales revenue decline of 11%. The company attributed the growth to customer inventory buildup and price hikes in some product lines.

However, net income was ¥0 billion due to the divestiture of the aramid paper business completed in April 2025. For the fiscal year ending March 2026, Teijin expects revenues to exceed initial forecasts but maintains its dividend outlook at ¥50 per share, with interim payments of ¥25 and final payments of ¥25 planned. The firm also outlined plans to streamline its pharmaceutical business by transferring distribution functions for seven long-term marketed products. Teijin's segments showed varied performance. Apparel & Industries saw robust sales across industrial materials and textile fibers, contributing to increased profitability.

Healthcare & Life Solutions experienced higher sales volumes for CPAP devices and rare disease medications but overall reduced profits due to business streamlining efforts. Electronics & Energy faced challenges, expecting lower profits due to market uncertainties and patent royalty income reductions. Specialty Materials benefited from operational improvements and cost-cutting measures, leading to higher profits. Looking ahead, Teijin projects a 10% revenue increase for the full year, driven by synergies from recent acquisitions and ongoing cost optimization initiatives. The company remains committed to maintaining stable dividends while focusing on sustainable growth strategies.