Tokyo – Zeon Corp.’s elastomers unit registered a strong recovery in the final three months of 2020, including an almost four-fold rise in earnings compared to the previous quarter.
For its fiscal third quarter, to 31 Dec, segment operating income reached Yen4.5 billion (€36 million), representing an increase of 73% year-on-year and 374% quarter-on-quarter.
Zeon’s financial presentation, issued 29 Jan, did not include detailed commentary on the performance of its elastomers business, which supplies synthetic rubber, latex and chemicals.
However, it did note that sales prices for rubber materials had increased along with raw material prices, helping to improve business performance in the third quarter.
Increased sales levels also reflected improvement in the market situation and supply/demand balance seen since the second quarter, according to Zeon,
Revenue improved 26% compared to the previous three months, to Yen43.1 billion, but remained 1% below prior-year levels, Zeon added.
Zeon Elastomers Business Q3
Breaking down the figures, Zeon’s synthetic rubbers unit posted 4% year-on-year lower sales of Yen28.6 billion, on 4% lower volumes of 82,000 tonnes.
Third quarter sales volumes of rubbers continued a “recovery trend” picked up since the second quarter of the fiscal year.
In the latex business, sales prices rose on strong demand balance for protective gloves. Revenue grew 10% to Yen4.5 billion, despite 1% lower volumes, at 32,000 tonnes.
The chemicals business saw a 16% year-on-year increase in volumes, helped by “steady demand for petroleum resin.” Sales, however, remained 2% lower than prior-year levels at Yen8.5 billion, Zeon reported.