Thank you very much for joining us today despite your busy schedule. On behalf of the Toray Group, I'd like to take this opportunity to extend my gratitude towards your continued understanding and your interest in our management and business activities. Now, I'd like to report Toray 's B usiness Results for the first quarter ended June 30, 2025. Now, I'd like to follow the table of contents shown on page one. This is a summary of the business performance and forecast. In the first quarter, while the gradual recovery of the Japanese economy continued, sluggishness in the flow of goods and holding back on purchases were also seen in some areas against the backdrop of growing uncertainties triggered by U.S. policy shifts by the Trump administration.
Under such business environments, the corporate income for the first quarter decreased compared with the same period a year earlier to JPY 29.1 billion due to weak market conditions and inventory adjustment, although the company promoted business structure reform and strategic pricing initiatives. The consolidated business forecast for the fiscal year ending March 2026 is the same as the initial forecast announced on May 14, 2025. In terms of annual dividends for the fiscal year ending March 2026, the company anticipates paying JPY 20 per share of common stock, a JPY 2 increase compared with the previous fiscal year. Furthermore, the company is proceeding with share buybacks in line with the resolution at the Board of Directors meeting held in November 2024. As of the end of July 2025, the total repurchase price of shares has reached JPY 80 billion, equivalent to 82 million shares. I'll explain the details starting from the next page.
I'd like to begin with an overview of business results for the first quarter ended June 30, 2025. Please turn to page four. Consolidated revenue for the first quarter decreased 6.6% compared with the same period a year earlier to JPY 595.8 billion. Operating income decreased 20.9% to JPY 29.1 billion, and profit decreased 36.1% to JPY 17.2 billion. Special items for the first quarter worsened by JPY 2.9 billion to - 1.6 billion. Page five is about assets, liabilities, equity, and free cash flows. Total assets stood at JPY 3,299.1 billion, up JPY 6.5 billion from the end of the previous fiscal year due primarily to an increase in inventories and tangible fixed assets in spite of a decrease in trade and other receivables. Total liabilities increased JPY 37.6 billion from the end of the previous fiscal year to JPY 1,509.6 billion, owing mainly to increases in borrowing.
Total equity decreased by JPY 31.1 billion from the end of the previous fiscal year to JPY 1,789.5 billion, mainly due to share buybacks. Owner's equity was JPY 1,674.5 billion, interest-bearing liabilities were JPY 904.3 billion, and the D/E ratio was 0.54. Free cash flow was negative at JPY 0.8 billion. Page six explains about capital expenditures, depreciation and amortization, and R&D expenditures. Capital expenditures for the first quarter decreased by JPY 1 billion- JPY 35 billion on a year-to-year comparison. Depreciation and amortization decreased by JPY 0.7 billion- JPY 32.7 billion. R&D expenditures increased by JPY 0.6 billion-JPY 18.1 billion compared with the same period of the previous fiscal year. The table on page seven describes revenue and operating income by segment. In addition, the graph on this page shows the past analysis of JPY 7.7 billion decrease in operating income for the current first quarter on a year-to-year comparison.
As they promoted business structure reform and strategic pricing initiatives, the fibers and textiles segment remained strong. On the other hand, the performance chemicals segment decreased in operating income due to stagnant sales of battery separator film and the lack of temporary factors, including reversal of allowance that increased profit in the first quarter of the previous fiscal year. In the environment and engineering segment, operating income decreased due mainly to the shift in project timing at the Japanese subsidiary. Carbon fiber composite materials and the environment and engineering segment were impacted by the weak market conditions and inventory adjustments. Operating income for the first quarter decreased 20.9%, while operating margin decreased 0.9 points. Using page eight and after, I'd like to explain the results of each segment. First, fibers and textiles.
Revenue of the fibers and textiles segment decreased 2% to JPY 239.9 billion compared with the same period a year earlier, and the operating income increased 2.5% to JPY 15.2 billion. The apparel applications were robust overall, as sales momentum of the spring-summer clothing in Japan and shipment from overseas trading subsidiaries was strong. The industrial applications fell short of a full recovery of the market condition, especially in the automobile applications, but the group strived to reduce costs. Page nine is the performance chemicals segment. Revenue decreased 9% to JPY 220.1 billion compared with the same period a year earlier. Operating income decreased 25.7% to JPY 13.6 billion. In the resins and chemicals business, demand was on a recovery trend in the resins business, as the effects of last fiscal year's production decline by the automobile manufacturers in Japan had resolved. However, the chemicals business was affected by the worsened market conditions.
The films business saw an increase in electronic parts related demand, but sales of battery separator film were stagnant. In the electronic and information materials business, all LED-related materials and circuit materials were affected by the weak display panel demand in China. Page ten is the carbon fiber composite materials segment. Revenue decreased 13.9% to JPY 56.9 billion compared with the same period a year earlier, and this segment posted an operating profit of JPY 4.6 billion, a 9.9% decrease from the same period a year earlier. The aerospace applications were affected by the inventory adjustment in the supply chain and the appreciation of the yen, although user demand was on a recovery trend. In the sports applications, inventory adjustment in general-purpose products for the outdoor retail continued, but sales of high-end products were strong. In the industrial applications, wind turbine blade applications saw a gradual recovery.
However, other applications entered an adjustment phase. Page eleven is the environment and engineering segment. Revenue decreased 7.9% to JPY 53 billion compared with the same period a year earlier, and operating income decreased 38% to JPY 3.1 billion. The water treatment business was affected by the delay of shipments for large projects in the Middle East and the stagnant market conditions in China. As for subsidiaries in Japan, revenue of Japanese engineering subsidiaries decreased due to shifting project timing. Page 12 is the life science segment. Revenue decreased 3.4% to JPY 11.7 billion compared with the same period a year earlier, and operating income decreased by JPY 0.2 billion to - JPY 1 billion. The pharmaceutical business was affected by the impact of the penetration of generic versions of the drugs. In the medical devices business, shipment of the mainstay products stylized for hemodial filtration was steady, but affected by persistently high-priced raw materials.
Page thirteen shows the business results of major subsidiaries and regions. At Toray International, sales were strong mainly in the fibers and textiles. At our subsidiaries in Southeast Asia, in the fibers and textiles business, demand for the apparel applications and automobile applications in the industrial applications was slow. In the performance chemicals business, spread of ABS resins improved. At our subsidiaries in China, in the fibers and textiles business, the apparel applications were strong. In the performance chemicals business, the chemical business was impacted by the worsened market conditions. As for our subsidiaries in the Republic of Korea, sales of the fibers and textiles business decreased stemming from the scaled-down of low profitability applications. However, spread has improved. In the performance chemicals business, sales of battery separator film were stagnant. Next, I'd like to explain the consolidated business forecast for the fiscal year ending March 2026.
Please turn to page 15. The global economy, which was in a gradual recovery phase, is expected to slow down triggered by the imposition of the respiratory typhus by the U.S. under the Trump administration. The Japanese economy also faces concerns over a decline in exports following the imposition of the U.S. typhus and intensifying competition with China, and there is growing uncertainty over the sustainability of the economic recovery trend. Other causes of concern include the trends in oil price, as well as the financial and foreign exchange markets centered on the U.S. against the backdrop of the imposition of typhus and the situation in the Middle East. The direction of the trade policies of the U.S.
under the Trump administration, as well as its negotiations with various countries, will likely affect the prevailing economic trends, which in the medium to long term may significantly alter supply chains and trade structure. For the fiscal year ending March 2026, forecast for revenue, operating income, and the profits attributable to owners or parents remain the same as the announcement on May 14, given the current business performance and the environment. Assumed exchange rate from July onwards is JPY 145 per one U.S. dollar. Page six shows the consolidated business forecast for the fiscal year ending March 2026 by segment. The impact from the U.S. tariff measures remains the same as the announcement on May 14, as trends of tariff measures and countermeasures to it by customers are still uncertain, although direct and indirect effects are expected, including increases in procurement costs at the U.S.
production basis and global demand decrease. This concludes my presentation. Thank you very much.