Update: JSR Corp. posts large drop in elastomer earnings

ERJ staff report (TP/PR)

Tokyo – JSR Corp.'s elastomers business has contributed significantly to a fall in group income for the first quarter of its current fiscal year, which runs to 31 March 2015.

For the period 1 April to 30 June 2014, the group reported net sales of Yen96,069 million (€701.7m) – an increase of 4.7% compared to the Q1 2014 figure. Operating income, though, fell 12.7 percent to Yen8,131 million. 

Much of the earnings shortfall was down to JSR’s elastomers unit, which posted a 53-percent drop in operating income to Yen2,223 million.

The decline was despite fairly steady, first-quarter net sales for the elastomers business - at Yen46,221 million, down just 2 percent on the first three months of its previous financial year.

JSR said its overall business results for the first quarter had progressed in line with expectations, though results varied by business segment.

In the petrochemical products (elastomers and plastics) business, net sales and operating income decreased from the previous year due to sluggish market conditions and sales volume decline.

This was despite steady demand for tire and automotive products, said a JSR statement, which did not comment further on the drop in earnings at its elastomers unit.

“We expect profitability to improve in the second quarter, since our shipments are forecast to expand, including full contribution of our new S-SBR plant in Thailand,” the group stated.