Zeon elastomers business posts big increase in Q1 earnings

Tokyo – Zeon Corp.’s Elastomers business has reported a substantial increase in operating income on flat sales for the first quarter of its fiscal year which began 1 April.

For the three months ended 30 June, the Elastomers unit posted an operating income of Yen5.5 billion (€30 million), representing a 31% increase year-on-year.

At Yen58.2 billion, Elastomer division sales came in about level with the same quarter of Zeon's previous financial year, the Japanese group reported 29 July.

Within the business unit, synthetic rubbers saw a 25% year-on-year increase in operating income to Yen5.2 billion, on 1% lower sales of Yen44.3 billion.

Speciality rubbers demand, Zeon said, “remained firm, mainly for domestic applications,” and with no impact from the closure of the Strait of Hormuz

General-purpose rubbers, however, saw volumes decline due to feedstock availability.

Synthetic latex and chemicals – grouped under ‘others/elimination’ since April – posted an operating income of Yen300 million, up from a loss of Yen600 million a year ago. Quarterly sales, meanwhile, grew 2% to Yen13.9 billion.

On the business unit's revenue performance, Zeon said volumes declined due to production being aligned with feedstock availability.

This, however, was offset by selling price revisions reflecting higher raw material prices and yen depreciation.

Operating income grew due to cost-reduction efforts and the impact of inventories at the end of the previous fiscal year.

Zeon Elastomer business fiscal Q1/26  (Yen bn)