Japan's top textile maker Toray Industries Inc has released its earnings for the year ended March showing a significant dip into the red.

The group posted a net loss of JPY16.3bn (US$166m) reflecting extraordinary losses of JPY43.0bn including loss on write-down of investment securities and loss from impairment of property, plant and equipment.

The company says it blames its loss, its first recorded for nine years, on weakened demand for its products at home and abroad.

The textile maker had made a profit of JPY48.07bn last year.

This year its sales dropped 11% to JPY1.472trn from Y1.650trn. Operating income was JPY36.0bn, down 65.2% from the previous fiscal year. Ordinary income was JPY20.5bn, down 77.6% year-on-year partly due to foreign exchange loss.

Toray said it strived to reduce capital investments, cut down expenses and adjusted inventory levels in response to the economic slowdown during the year.

By Michael Fitzpatrick.