Zeon elastomers business returns to profit

Tokyo – Zeon Corp.’s elastomers business saw a reversal of a loss quarter-on-quarter as it reported a positive earnings figure for its fiscal first quarter.

For the three months to 30 June, the synthetic rubbers, latices & chemicals business posted net sales of Yen52 billion, down 2% year-on-year and 5% quarter-on-quarter.

At Yen2.5 billion (€16 million), operating income fell 39% year-on-year but represented recovery from a loss of Yen2 billion in the previous quarter, Zeon reported 27 July.

"Synthetic rubber boosted operating income for the elastomer business overall due to [currency effects] and the reversal of loss on disposal and valuation for inventories," stated Zeon

Overall volumes were down 13% year-on-year across all three segments: reflecting 6% lower synthetic rubber volumes, as well as 32% and 20% dips for latices and chemicals respectively.

The value of Zeon's elastomers unit's sales declined on lower volumes and selling prices, though synthetic rubber revenues lifted 8% to Yen40 billion.

This was despite synthetic rubber sales being impacted by economic slowdown in China, especially in general-purpose applications, according to Zeon's report.

Meanwhile, it said, a slow recovery in demand hit the chemicals unit, and changes in the supply-demand balance for medical gloves weighed on latex sales.