Nippon Zeon remains in profit, despite 11% sales retreat

ERJ staff report (DS)

Tokyo -- Nippon Zeon Co Ltd reported sales down by 11.2 percent for the 12 months ended 31 March, 2009, but the company expects sales for the first half of the current year will be down by 36 percent. Zeon makes nitrile rubber (NBR), hydrogenated nitrile (HNBR) and other polymers for the rubber industry.

Sales for the 12 months amounted to yen 268 900 million (euro 2091 million), down by 11.2 percent on the previous year. The company expects sales in the six months to 30 Sep 2009 to be down by 36.1 percent on the 2008 figure, at yen 100 000 million. Sales for the full year are expected to be yen 213 000 million, down by around 20.8 percent on the most recent year.

Despite the substantial decline in sales, Zeon expects to remain mostly in profits. In the most recent 12 months, operating profit was positive at yen 2940 million, down from yen 25 300 million a year previously. The forecast for the current year is a profit of yen 4000 million, reversing a loss of yen 1500 million in the first half.

In terms of net profit, Zeon recorded yen 2480 million for the most recent year, down from yen 9090 million a year ago. The company expects a loss of yen 1700 million in the first half, reversing to a profit of yen 1000 million for the full year ended March 2010.

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Reuters report