TSRC improves first quarter earnings after weaker full-year results

Taipei – TSRC Corp. expects volatile raw material markets, geopolitical disruption and supply chain instability to continue to pressure the synthetic rubber sector despite delivering a stronger year-on-year first quarter performance.

In a recent investor update , the Taiwanese synthetic rubber producer reported first quarter net income of NT$436 million (€12 million), up 32% year-on-year and 62% higher than the previous quarter.

Revenue for the first quarter was broadly flat year-on-year at NT$10.33 billion, while operating profit rose 32% to NT$651 million.

The stronger quarterly performance followed a weaker full-year 2025 result, during which revenue fell 2% year-on-year to NT$36.47 billion, operating profit declined 29% to NT$983 million and net income dropped 48% to NT$448 million.

TSRC said first quarter 2026 performance was driven by “higher volume sales”, “disciplined supply chain management and timely pricing action” as well as procurement strategies developed to respond to market disruption.

According to the TSRC, “feedstock and raw material supply disruptions created additional opportunities”, while its “time-tested procurement strategy and agile respond to market changes enabled supply reliability to customers.”

The group said its “key monomers procurement strategy enabled security of supply at market competitive price”, while “strategic supply chain footprints” continued to support “quality and reliability of supply to customers.”

TSRC added that it will continue to pursue “mid to long-term initiatives and innovation projects including SSBR, medical, HSBC.”

The company nevertheless warned that the broader market environment remains highly unstable.

TSRC said the conflict in the Middle East has had a “significant impact… on the market”, disrupting “the entire value chain – crude, feedstock, C4/C5, synthetic rubbers.”

The producer added that the disruption has led to “rapid increase in cost of raw materials followed by higher energy and utilities costs”, as well as “longer supply chain lead time and higher transportation cost.”

According to TSRC, the market initially experienced “panic buying” followed by a slow-down in demand due to unsustainably high cost.

At the same time, it added, “significant uncertainties and volatility undermine the ability to plan.”

Looking ahead, the supplier said it expects “volatile and uncertain” market conditions to continue through the remainder of 2026.

“Uncertain tariff policy and geopolitical conflicts are expected to continue to negatively impact global economic growth,” TSRC stated, adding that the Middle East conflict “will cast a long shadow on the petrochemical value chain in terms of supply disruption and cost volatility.”

The group also warned that manufacturing and operating costs are expected to “remain elevated amid rising energy cost and inflation”, while there is “no clarity on the outcome of interplay between potential inflation, economic recession, and supply disruptions.”

Looking ahead, the producer said it intends to maintain “prudent cost management and rigorous demand-supply planning”, alongside “discipline and timely execution on raw material procurement, pricing action, and supply chain optimization.”

The group also reiterated its commitment to “deliver strong financial results vis-a-vis market headwinds” while continuing “technology innovations” and support for customers.