Zeon elastomer profits down on lower volumes, latex decline
15 Aug 2022
Japanese group reports sales up 10% driven by price adjustments
Tokyo – Zeon Corp.’s elastomers business, which manufactures synthetic rubbers, latexes and rubber chemicals, has reported a decline in operating profit as volumes fell and costs continued to rise for materials and logistics.
First quarter operating profit dropped 32% year-on-year to Yen4.1 billion (€30 million), on 10% higher sales of Yen53.5 billion, said Zeon 29 July.
Higher sales were achieved on selling price adjustments in conjunction with the sharp rise in raw material prices.
Profits, said Zeon, were down due to rising raw materials prices, higher freight costs and a 14% decline in volumes resulted from regular repairs at synthetic rubber plants.
Profits saw a Yen1.6 billion impact from the volumes decrease, while raw material prices and freight costs had negative effects of Yen8.6 billion and Yen2 billion respectively.
These, Zeon said, were partially offset by price adjustment gains of Yen7.7 billion and a positive exchange impact of Yen2.5 billion.
Synthetic rubbers and rubber chemicals volumes fell 6% year-on-year, while latexes saw a decline of 40%, due to excess distribution inventory, said Zeon.
Sales of synthetic rubbers grew 22% year-on-year to Yen3.7 billion, while rubber chemicals recorded a 23% increase to Yen11.1 billion.
Revenue within the latex business, however, fell 52% to Yen3.6 billion.