TonenGeneral revises 2012 income forecast upward by 420%

Japanese refiner TonenGeneral Sekiyu raised its forecast consolidated net income for calendar year 2012 by 420% to JPY52 billion (US$654.7 million), from an estimated JPY10 billion (US$118.7 million) published in August. The company’s forecast operating income was likewise revised upwards by 50% to JPY18 billion (US$213.7 million), and ordinary income to JPY17 billion (US$201.9 million), up by 55%. Sales for the year till December are expected to be at JPY2.8 billion (US$ 33.2 million). The upward revisions mostly reflect the third quarter’s actual results which were higher than the previous forecast, plus the income tax effects of the company’s acquisition of EMG Marketing Godo Kaisha, which made it a consolidated subsidiary on June 30.
TonenGeneral said that the third quarter’s success was due to a full three months of integrated operation. Operating income from the acquired business was exceptionally high, surpassing previous performance; moreover, one-time transition costs were lower, and margins from oil were higher compared with the depressed levels in the second quarter. (November 14, 2012)