Teijin Limited, a Japanese manufacturer of carbon fibre and apparel products, has posted net sales of 244.8 billion yen (approximately $1.69 billion) for the first quarter (Q1) of fiscal 2023 (FY23), a modest increase of 1 billion yen or 0.4 per cent compared to 243.8 billion yen in Q1 FY22. However, the operating income saw a sharp decrease by 6.6 billion yen, falling from 10.8 billion yen in Q1 FY22 to 4.2 billion yen in Q1 FY23.

The fibres and products converting segment reported positive growth compared with Q1 FY22. Net sales in this segment rose to 75.6 billion yen, up 1.9 billion yen or 2.6 per cent. EBITDA increased to 5.1 billion yen, up 1.5 billion yen or 43.9 per cent, while depreciation and amortisation reached 2 billion yen, an increase of 0.2 billion yen or 11 per cent. Operating income was particularly strong, rising to 3.1 billion yen, up 1.4 billion yen or 77 per cent, and ROIC increased from 5 per cent to 9 per cent, an improvement of 3 per cent, Teijin said in a press release.

In contrast, the materials segment faced challenges. Net sales in this segment were 105.8 billion yen, up 1.9 billion yen or 1.8 per cent. EBITDA decreased to 7.5 billion yen, down 0.5 billion yen or 5.9 per cent, and depreciation and amortisation increased to 9.5 billion yen, up 0.8 billion yen or 9.2 per cent. Operating income reported a loss of 2 billion yen, compared to a loss of 0.8 billion yen in Q1 FY22. The decrease in the materials segment's operating income is mainly attributed to the lingering impact of a plant fire that occurred in the previous fiscal and the delayed recovery of the Chinese economy.