Japan's TonenGeneral slashes 2012 income forecast by 75%

Japanese refiner TonenGeneral Sekiyu reduced its forecast of consolidated income for 2012 by 75% from JPY40 billion (US$511 million) to JPY10 billion (US$127.7 million). The company’s new estimated operating income is JPY12 billion (US$153 million), down by 78.2%; while its normal income is forecast at JPY11 billion (US$140 million), down by 80%. But the company’s sale for the entire year is expected to reach JPY2.9 billion (US$37 million), up by 3.4% from the previous projection of JPY2.8 billion (US$35 million). “Projected net sales, operating income, ordinary income and net income for full-year 2012 have been decreased … reflecting the lower margins for oil and chemical products experienced in [the] second quarter [of] 2012,” the company said in a statement. “No full-year inventory gains are assumed in the current forecast as compared to Yen 19 billion in the prior forecast.” ExxonMobil previously owned 50.02% of TonenGeneral and in June, ExxonMobil reduced its stake to 22%. (August 14, 2012)