Tosoh Corporation announced its consolidated results for the first quarter of fiscal 2023, from April 1, 2022, to June 30, 2022. The company’s consolidated net sales totaled ¥252.3 billion (US$1.9 billion), up ¥51.1 billion, or 25.4%, compared with consolidated net sales in the first quarter of fiscal 2022. The increase was attributable to price increases of raw materials and fuels such as naphtha sparking increases in sales prices, and a progressively weakening yen. Operating income also increased, ¥0.2 billion, or 0.5% compared with operating income in the same period the preceding year, to a surplus of ¥30.3 billion (US$233.6 million). This was due to an improvement in the gap between product receipts and payments and increased sales volume, while on the other hand, terms of trade deteriorated on account that the higher raw material and fuel costs, such as naphtha and coal, outweighed higher selling prices. A decrease in foreign exchange losses resulting from a weaker yen led to an increase in ordinary income of ¥11.5 billion, or 35.9% compared with the first quarter of fiscal 2022, to a total of ¥43.6 billion (US$336.2 million). And net profit for the quarter attributable to owners of the parent company increased ¥6.7 billion, or 31.0%, to ¥28.4 billion (US$219.0 million). During the first quarter, the global economy generally showed signs of recovery based on an increase in consumption and capital investment, as countries took measures to both prevent COVID-19 infections and promote economic activities. On the other hand, amid concerns about the Ukraine situation and the prolongation of China’s zero-COVID policy, soaring resource prices, sharp inflation, and disruptions in the global supply chain all pose risks to the economy, and the outlook for the domestic and overseas economy remains uncertain. Results by business segment Petrochemical Group:Petrochemical Group net sales rose ¥7.2 billion, or 17.4%, to ¥48.7 billion (US$375.5 million), compared with group net sales in the first quarter of fiscal 2021. Operating income decreased, ¥2.0 billion, or 43.5%, to ¥2.7 billion (US$20.8 million). This decrease was driven by a decline in shipments of olefin products and polyethylene resins, as well as worsening terms of trade caused by higher prices for raw materials and fuel, such as naphtha. Shipments of olefin products, such as ethylene, propylene, and cumene declined due to a decrease in production volume in line with the scheduled maintenance year. Moreover, product prices for ethylene and propylene rose, driven by higher naphtha prices. Product prices for cumene increased due to higher overseas market prices and other factors. Shipments of polyethylene resin decreased in both domestic and overseas markets. Product prices did increase, however, reflecting higher naphtha prices and market conditions overseas. Both shipments and exports of chloroprene rubber remained essentially unchanged from the first quarter of fiscal 2022, and product prices rose due to soaring raw material prices and tight supply and demand. Chlor-alkali Group:The Chlor-alkali Group’s first-quarter 2023 net sales increased ¥28.0 billion, or 37.9%, to ¥102.0 billion (US$786.4 million). The group’s operating income decreased ¥2.0 billion, or 17.4%, to ¥9.7 billion (US$74.8 million), driven by worsening terms of trade caused by higher prices for raw materials and fuels, such as naphtha and coal. Shipments of caustic soda rose due to an increase in production volume. And product prices increased owing to a correction of domestic prices and the improvement in overseas market conditions. Vinyl chloride monomer and vinyl chloride resin shipments both increased as production volume increased, and product prices rose, reflecting domestic price revisions. Domestic shipments of cement declined due to weak demand, while product prices rose in both domestic and overseas markets. Domestic and export shipments of methylene diphenyl diisocyanate (MDI) rose in line with increased production. Specialty Group:   First-quarter fiscal 2023 net sales by the Specialty Group increased ¥9.4 billion, or 17.5%, to ¥62.7 billion (US$483.4 million), compared with the same period of the previous fiscal year. The group’s operating income increased ¥2.8 billion, or 24.5%, to ¥14.1 billion (US$108.7 million), mainly due to an improvement in the gap between product receipts and payments resulting from higher raw material and fuel prices, such as coal. Shipments of ethyleneamines were on par with the same period of the previous fiscal year. Product prices rose, driven by higher product prices in overseas markets. Shipments of separation-related packing materials for liquid chromatography remained firm. Diagnostic-related products, shipments of in vitro diagnostic products declined, primarily in China.  Shipments of high-silica zeolites remained essentially the same as the corresponding period in fiscal 2022. Shipments of zirconia increased mainly for dental material applications in Europe. Silica glass shipments rose in line with the growing demand for semiconductors. Shipments of electrolytic manganese dioxide were down due to the easing of supply and demand in the U.S., but domestic and overseas product prices rose due to a price correction.