Zeon elastomers profits down despite sales gains

Tokyo – Zeon Corp.’s elastomers unit has seen a decline in third quarter operating income, due to a range of market, operational and cost factors, the company reported 31 Jan.

Over the final three months of 2022, the synthetic rubber, latexes and chemicals unit posted a 43% year-on-year earnings decline, to Yen2.9 billion (€21 million), on 14% higher sales of Yen56 billion.

The Japanese group linked the reversal to a drop in sales volumes, price adjustments, inventory management and an increase in general costs including a significant rise in energy prices.

In terms of revenue, Zeon's synthetic rubber operation reported a positive development, posting sales of Yen41 billion, up 27% year-on-year.

The group's latexes and chemicals businesses, however, reported declines of 36% and 4%, posting revenues of Yen3.5 billion and Yen9.8 billion respectively.

Sales volumes declined across all segments, with synthetic rubber volumes down 14% compared to last year, due mainly to repairs at plants and inventory adjustments.

Chemicals volumes fell 37% year-on-year due to “reactionary decline from price adjustments”, while latex volumes decreased 30% due to “excess inventory for latex gloves”.