Tokai posts 89% lift in carbon black earnings

Tokyo – Japan-based supplier Tokai Carbon has seen its carbon black business lifted in the first quarter of 2023, due mainly to strong global demand.

Tokai's carbon blacks unit posted an 89% year-on-year increase in operating income to Yen5.7 billion (€38 million), on 27% higher sales of Yen37.4 billion.

While volumes were slightly down compared to the year before, price adjustments and the effects of the weak yen helped push up the results, the company said 19 May.

While operating income was affected by investments to meet US environmental standards, the business unit “recovered significantly by capturing strong US demand.” 

Tokai's carbon black operations were also running at full capacity at facilities in Japan and Thailand, in response to strong global automotive and tire production.

According to Tokai, demand for tires remains “firm” and inventory adjustments by some tire makers had not impacted volumes.

The first-quarter gains build on Tokai’s strong performance in 2022 as increased demand in replacement tires more than offset a slowdown in vehicle production.

Last year, the carbon black business reported a 40% increase in operating income to Yen12.2 billion on 39% higher sales of Yen138 billion.