Kuraray lowers full-year forecast for isoprene unit

Tokyo – Kuraray has lowered the outlook for its isoprene business unit – which manufactures hydrocarbon-based chemicals and elastomers – amid increasing costs and low demand.

The unit is now forecast to report a loss of Yen7.0 billion (€44 million) for the full year, down from an earlier estimate of Yen2.5 billion loss and profit of Yen4.5 billion realised last year.

Full-year revenue is set to come in at Yen70 billion, as compared to a forecast of Yen75 billion in May, but higher than the Yen65 billion sales-level achieved in 2022.

For the first half, the business unit registered a loss of Yen2.7 billion, down from a profit of Yen2.5 billion in the same peiod of last year.

Sales for the period fell marginally to Yen31.8 billion, Kuraray also reported 9 Aug.

Segment results were affected by “deteriorating market conditions” as well as a decrease in sales volume, said the Japanese group.

The lower volumes were linked primarily to weakening demand, a trend started in the second half of 2022, as well as to inventory adjustments, added Kuraray.

Despite gains from price adjustments, the segment was further hit by depreciation at its Thai site – which started operations earlier this year – higher raw materials, fuel and exchange costs.