Zeon reports dip in elastomers sales on lower volumes

Tokyo – Zeon Corp.’s elastomer business has reported lower sales in the second quarter of fiscal year ending March 2026, due partly to lower volumes.

The unit, which includes synthetic rubbers, latexes, and chemicals, posted sales of Yen54.5 billion (€306 million) for the quarter ended 30 Sept, down 10% compared to the same quarter last year.

Operating profit for the division remained flat at Yen2.3 billion, Zeon reported 30 Oct.

The division posted lower sales and volumes across all operations, with synthetic rubbers reporting a 6% year-on-year decline in sales to Yen42.4 billion, on 12% lower volumes.

Latexes reported a 35% drop in sales to Yen2.7 billion as volumes decreased 35% compared to last year.

Chemicals also posted a 14% year-on-year fall in sales to Yen8.6 billion, on 10% lower volumes.

In the synthetic rubbers business, Zeon said sales and operating income declined due to “sluggish demand amid weak market conditions for tires, mainly overseas.”

Results were also impacted by lower raw material costs, which led to lower selling prices, and the appreciation of yen.

Zeon said overall demand remained “solid” for speciality rubbers, supported by steady car production in Japan.

Revenue and operating income within latexes business declined due to “the prolonged supply-demand imbalance” for medical use and disposable gloves.

Lower selling prices, due to a drop in raw material costs, as well as the effects of yen appreciation also impacted the results. 

The unit’s 'net income', however, increased year-on-year due to a reduction in SG&A costs, Zeon said.

In the chemicals business, sales declined due to weaker demand for adhesive tapes and labels in certain overseas regions.

Operating income, however, increased year-on-year due to selling price revisions for certain customers.