Zeon elastomers business reports 31% rise in first quarter earnings

Tokyo – Zeon Corp.’s elastomers business has reported a 31% year-on-year increase in operating income on flat sales in the first quarter of its financial year which began 1 April.

For the three months ended 30 June, the business unit posted an operating income of Yen5.5 billion (€30 million), up 31% year-over-year and 33% quarter-over-year.

Division sales remained flat at Yen58.2 billion, the Japanese supplier 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, which have been grouped under ‘others/elimination’ since the beginning of the fiscal year, returned to profit with operating income of Yen300 million, up from a loss of Yen600 million the year before, on 2% higher sales of Yen13.9 billion.

On the segment’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.