Volumes decline year-on-year amid ‘bearish demand’ in TBR replacement market
Tokyo – Tokai Carbon’s carbon black business has reported a 77% year-on-year improvement in operating income over the first three quarters of 2023.
For the nine months to end of September, the business segment posted operating income of around Yen16 billion (€97.5 million), on 7.5% higher sales of Yen111 billion.
The positive revenue development was achieved despite a negative impact of volumes, which Tokai said “remained at roughly the same levels year-on-year.”
Volumes were impacted by production adjustments for some consumers and “bearish demand” for replacement truck & bus tires, noted Tokai's 8 Nov report.
These effects, it added, were partially offset by a recovery in demand for new cars and related products as well as sales to the non-tire segment.
Operating income, meanwhile, increased due to the pass-through of "environmental equipment investment costs to sales prices with a focus on North America and from higher productivity.”
Indeed, Tokai’s carbon black business reported gains of Yen9.3 billion on ‘margins’, which more than compensated for an overall Yen3.2 billion negative effect from lower volumes and ‘other factors’, over the nine months.
North America remained by far the largest market for Tokai’s carbon black products: representing sales over the first three quarters of Yen54,397 million. This compared to: Japan, Yen30,702 million; Asia, Yen22,647 million; and Europe, Yen2,205 million.