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13 min ago 2 min read
Japanese industrial gas firm Nippon Sanso Holdings reported Q2 revenues of ¥375.3bn ($2.4bn), up 11.7% year-on-year, with core operating income up 11.5% to ¥54.2bn ($342m), as currency effects buoyed a steady quarter.
Excluding foreign exchange (FX), revenue grew 5.8% and core operating income 5.4%.
For the first half of fiscal 2027 to 30 September, revenue was ¥737.1bn ($4.65bn), up 13.3% (5.8% excluding FX), and core operating income was ¥108.8bn ($687m), up 15.5% (7.5% excluding FX). Net income also rose 38.6% to ¥79.5bn ($502m), helped by a ¥12.4bn ($78.3m) gain on the sale of headquarters land.
Nippon Sanso said pricing and productivity gains offset higher electricity and logistics costs. US on-site and electronic material gases across regions remained solid, while packaged gases across Europe and the US stayed weak.
Regional performance
In Q2, European revenues rose 18.8% to ¥101.6bn ($641.5m), and segment income grew 14.3% to ¥19bn ($120m) as gas sales grew on higher shipment volumes and price management.
Equipment and installation sales were lifted by Spanish homecare business Esteve Teijin Healthcare, acquired last fiscal year, and an Italian engineering business consolidated this year.
In the US, revenues gained 13.6% to ¥100.6bn ($635m) with income rising 15.7% to ¥13.4bn ($84.6m). Gas sales grew on higher volumes and price management, while equipment sales increased in both industrial gas and electronics-related businesses.
Revenues in Asia and Ocean were heavily impacted by FX, rising 15% to ¥64.6bn ($408m). Once currency effects are excluded, that slips to just 2.9%. Gas sales rose on price management and higher volumes, while equipment and installation sales fell in both industrial gas and , excluding currency.
In Japan, revenue rose 3.7% to ¥100.8bn ($636.5m) on higher electronic material gas shipments and price management, with flat equipment and installation sales. Segment income fell 1.0% to ¥12.9bn ($81.5m) on higher costs.
Outlook
The results come in the first year of the company’s Next Innovation 2030 plan, which targets revenues of ¥1,500bn ($9.47bn) to ¥1,575bn ($9.95bn), core operating income of ¥250bn ($1.58bn) to ¥275bn ($1.74bn), with operating margins of at least 17% by 2030.
Nippon Sanso upheld its full-year forecast of ¥1,380bn ($8.7bn), ¥208bn ($1.3bn) in operating income, and a net income of ¥131bn ($827m), but said developments in the Middle East would be a “key point to watch.”
