Zeon elastomers business down at Q3

Tokyo – Despite higher sales Zeon Corp.’s elastomers business has registered a sharp decline in earning, the group’s third quarter results for the period covering from 1 April to 31 December 2014 show.

For the first three quarters, Zeon reported a slight rise of 2 percent in its net sales for elastomers. This was despite a 4-percent drop in volumes, which the company mainly blamed on an 8-percent drop in the sales of its general-purpose rubbers - particularly to its overseas markets. Zeon’s speciality rubbers sales grew 4 percent.

Operating income at the elastomers business for the first nine months fell sharply, from JPY152,000 million in the previous year to JPY136,000 million – a negative growth of 11 percent.

For the group as a whole, Zeon reported a 31-percent rise in operating income, which rose to JPY15,000 million (€111.8 million) compared JPY12,000 million for the same period the year before.

The company’s sales remained on a par with last year showing a one percent increase from JPY381,000 million, compared to JPY378,000 million the year before.

Zeon supplies tire makers with styrene butadiene rubber (SBR), butadiene rubber (BR) and isoprene rubber.

With the characteristics of SBR now being further refined for use in low-fuel-consumption S-SBR demand is expected to rapidly expand, and capacity is expected to be increased.

Zeon, meanwhile, claims to be the world’s number one manufacturer of specialty rubber for applications such as automotive radiator hoses, fuel hoses, fan belts and oil seals.

Products typically include its Zetpol hydrogenated nitrile rubber-based timing belts that are said to display superior heat and oil resistance.

A report by Investment Bridge Co. Ltd. earlier in January said that a new version of Zetpol has significantly improved the performance of products using the original versions of the HNBR.

The new product enjoys a 15-degree C increase in heat resistance, according to the Bridge Report.

“The material extends the life of seals and gaskets and is in strong demand for use in next generation bio-fuel engines,” the report said.

It went on to say that commercial production of the new Zetpol started in November 2012 at Zeon’s Kawasaki Plant and reached full-scale production in 2013.