Tokyo – Zeon Corp.’s elastomers business has seen a year-on-year decline in operating income despite higher sales in the year ending 31 March.
Full year net sales rose 2% for the segment to Yen198 billion (€1.6 billion), helped by a 1% increase in rubber revenues at Yen138 billion, Zeon reported 26 April.
Sales increased for the year despite 1% decline in volumes to 616,000 tonnes, which included a 1% drop in rubber volumes and a 5% decrease in latex volumes.
The Japanese supplier also posted a 20% year-on-year drop in operating income at Yen17.7 billion, impacted by a fluctuation in raw material and a decline in formulated selling price.
For the fiscal year started 1 April, Zeon expects further declines within its elastomers business.
Total sales for elastomers, the company expects, will fall 4% to YEN 190 billion, with operating income set to decline 19% to Yen14.4 billion.
The company release did not offer a reason for the expected declines this year.