4 Nov 2019
The Japanese materials supplier has seen a 37% decline in operating income for first half of financial year, ending March 2020.
Tokyo – Zeon Corp.’s elastomers business has reported declines in both sales and operating income for the six months to end of September.
Net sales for the elastomers segment – comprised of ‘rubbers’, latex and chemicals units – fell 8% year-on-year to Yen92 billion (€761 million), while operating income decreased 37% at Yen6 billion.
Rubber sales and operating income decreased due to the sluggish business in the automotive segment and general industry, Zeon said in its first half statement 31 Oct.
Volume sales for general purpose rubbers, mainly used for tires, rose 3%, marked by the growth of butadiene rubber and solution styrene butadiene rubber.
Specialty rubbers, mainly used within the automotive industry, posted a 9% decline in volumes due to global demand decline and sluggish market conditions, Zeon noted.
Sales and operating income in the rubber chemicals unit also fell, mainly as a result of volume decrease from the regular plant maintenance.
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