Tokai carbon black unit posts robust quarter amid cost, market challenges

Tokyo – Tokai Carbon’s carbon black production operation has reported a strong year-on-year sales development during the first quarter of 2024.

Over the three months to 30 March, volumes “decreased slightly” largely due to ongoing inventory adjustments in the replacement tire market.

Net sales, however, increased 5.9%, to just under Yen40 billion, in part reflecting the impact of “exchange rates and other factors,” Tokai said 9 May.

Segment operating income fell 1.1% year-on-year to Yen5.7 billion, according to the Japanese group's quarterly, financial report.

The reverse was linked to costs linked to “the start of operations at large-scale 'environmental facilities' in North America,” as well as higher raw materials prices.

On the trading environment, Tokai said the global economy “continued to show a strong sense of stagnation” due to a sluggish European economy and slow growth in China.

There are also "concerns about the impact of heightened geopolitical risks, such as the deteriorating situation in the Middle East, on the outlook for the global economy,” the group added.