Kuraray isoprene earnings down on lower volumes

Tokyo – Kuraray’s isoprene business has seen a decline in first-half operating income as volumes declined due mainly to raw materials shortage.

The segment’s operating income for the first six months of 2022 was down 24% year-on-year at Yen2.5 billion (€18 million), on 4.5% higher sales of Yen32 billion, said Kuraray.

The unit, which includes isoprene chemicals and elastomers, saw sales volumes decrease during the period mainly as a result of “temporary difficulty in procuring raw materials and despite steady demand”, said the company presentation earlier this month.

Kuraray noted that price negotiations during the period partially compensated for soaring raw material and fuel costs as well as the rising costs of logistics.

For the full year, Kuraray expects the business unit to deliver an operating income of Yen6 billion, on a par with last year’s figures but down from an earlier forecast of Yen6.5 billion announced in May.

Isoprene sales are anticipated to come in at Yen71 billion, 14.5% higher than last year and 9% higher than earlier estimates in May.

You can sign up here for free to receive the ERJ Daily Newsletter.