Stronger latexes shipments offset low demand, selling prices in synthetic rubbers business
Tokyo – Zeon Corp. has posted a 12% year-on-year rise in operating income from its elastomer business to Yen4.2?billion (€25?million) in the second quarter, despite a 4% decline in sales to Yen58.1?billion.
The division, which includes synthetic rubbers, latexes and chemicals, saw operating income more than double quarter-on-quarter, while sales were flat, Zeon reported 30 July.
The group largely attributed the division’s stronger earnings to higher shipments of latexes following the completion of domestic regular maintenance work and lower headquarters expense allocations.
The synthetic rubbers business posted sales of Yen44.5 billion, down 2% compared to the second quarter of 2024.
Synthetic rubbers' earnings also fell due to low demand, especially lower overseas volumes due to maintenance in Singapore; lower selling prices caused by falling raw material prices, and the appreciation of the yen.
On a sequential basis, however, sales rose 4% and profits improved on higher domestic shipments after maintenance work ended.
Latexes sales were up 3% year-on-year at Yen3.5?billion and gained 8% from the previous quarter.
This was due to increased shipments and lower headquarters costs which outweighed the impact of softer selling prices.
The chemicals segment revenue fell 12% year-on-year to Yen9.0?billion and was down 15% from the first quarter due to maintenance at the Mizushima plant.
Despite the sales drop, operating income improved on price adjustments and better unit costs from higher production.
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