Zeon raises financial outlook on stronger elastomer performance

Tokyo – Zeon Corp. has raised its financial outlook for the first half of fiscal year 2024, started 1 April, due mainly to a strong performance by its elastomer materials business.

The Japanese group now expects earnings to come in at Yen15 billion (€90 million), up 36% compared to Yen11 billion estimated in April.

Group sales are estimated to reach Yen210 billion, 6% higher than the April estimate of Yen198 billion, Zeon reported 29 July.

Zeon linked the upward revision to the rising prices of elastomer products, positive exchange rate effect as well as higher demand due to ‘changes in overseas market environments.’

During the first quarter, the elastomer business division reported a 15% year-on-year increase in sales to Yen60 billion.

Higher sales were led by synthetic rubbers and due partly to “moderate recovery” for latexes and chemicals, according to Zeon.

Synthetic rubbers posted a 12% year-on-year increase in revenue to Yen45.5 billion, while latexes and chemicals grew 27% and 29% respectively to Yen3.4 billion and Yen10 billion.

Volume-wise, all three categories reported increases, with latexes seeing a 36% year-on-year growth.

Synthetic rubber volumes rose 10% year-on-year while chemicals posted a 4% growth.

Segment earnings increased 53% year-on-year to Yen3.8 billion, due mainly to the performance of synthetic rubbers.

Here, Zeon said higher sales and volumes, as well as a Yen2.7 billion positive currency impact more than offset lower prices of chemicals and increased logistics and maintenance costs.