Zeon eyes recovery as automotive, gloves markets stablise

Tokyo – Zeon Corp. expects growth within its elastomers business in 2024, despite posting a weak set of results for its fiscal 2023, ended 31 March.

The division, which includes synthetic rubbers, latex and chemicals, saw a 3% year-on-year decline in sales to Yen215 billion (€1.2 billion).

According to Zeon, the decline in revenues mainly reflected a dip in selling prices for chemicals and general purpose rubbers.

Operating income for the fiscal year, fell 35% year-on-year to Yen6.6 billion as lower volumes and pricing offset improved freight-cost and foreign-exchange effects.

Over the final quarter of the financial year, the elastomers segment reported sales of Yen55.6 billion, up 1% compared to the same period the year before.

Of the revenue, synthetic rubbers contributed Yen41.2 billion, up 3% year-on-year but down 2% compared to the previous quarter.

Here, noted Zeon, overseas synthetic rubber shipments were up, but seasonal factors and end-of-year inventory adjustments meant that speciality rubber shipments decreased.

At Yen500 million, the segment’s fourth quarter operating income improved year-on-year, up from a loss of Yen2 billion reported the year before.

For the current fiscal year, started 1 April, Zeon expects the elastomers business to rebound with sales forecast of Yen221 billion and operating income of Yen10 billion.

Zeon anticipates demand for its synthetic rubber materials to be steady with “regional differences” in the automotive market.

The group also anticipates revenue from latices to improve as “the market for gloves is expected to recover moderately.”

In the chemicals operation, Zeon said the adhesive market is expected to recover moderately with ‘regional differences’.