Tokyo – JSR Corp.’s elastomers business has posted a “substantial decline” in operating profit in the nine months to end of December 2019, due in part to “significant deterioration” in market conditions.
Segment operating profit fell 87% year-on-year to Yen1 billion (€8.4 million) in the first quarters of the financial year 2019, on 10% lower sales of Yen136 billion, JSR reported 27 Jan.
The Japanese materials supplier linked the declines to deteriorating market conditions and declining automotive and tire demand, particularly in China.
According to the company, Japan’s domestic tire production was weak, especially registering negative growth in the third quarter.
In addition, sluggish global tire sales and slowing automotive production trends impacted the results.
JSR manufactures elastomer and resin products, including styrene butadiene rubber and butadiene rubber, as well as emulsion polymers.
The elastomers units contributed to over 40% of the company’s sales in the first three quarters of 2019, and just under 3% of the company’s operating profit.