Tokai lowers sales outlook on carbon black decline

Tokyo – Tokai Carbon has lowered its full-year sales outlook by nearly 6% on lower sales volumes within its carbon black segment.

The group now expects consolidated sales to come in at Yen321 billion (€1.8 billion), down from an estimate of Yen341 billion in February and last year’s reported revenue of Yen350 billion, said Tokai 6 Nov.

The downward revision, said Tokai, is mainly due to a decline in volumes as a result of production adjustments by major tire manufacturers and lower sale prices. 

Group operating income and ordinary income are projected to exceed the previous forecast slightly, mainly due to cost reductions and improvements in production efficiency.

Over the first nine months of the year, Tokai said its carbon black operating profit fell 28.7% year-on-year to Yen11.6 billion, on 7.1% lower sales of Yen110.9 billion.

Earnings fell mainly due to a decline in volumes, margins and rising fixed costs, said Tokai.

For the full year, the segment is expected to report an operating profit of Yen12.4 billion, down 43% from Yen21.7 billion reported last year.

Segment revenue is expected to decline by nearly 7% to Yen146 billion for the year.