Zeon elastomers business posts 90% increase in earnings

Tokyo - Zeon Corp.’s elastomers business has reported a 90% year-on-year increase in earnings, to Yen2.2 billion, on second-quarter sales of Yen60.4 billion (€365 million) - 15% higher than the same period of last year.

The Japanese group linked the gains over the three months to 30 Sept to higher pricing achieved by the unit, which produces synthetic rubbers, latex and chemicals, to higher pricing.

Volumes grew 8%, helped by a 71% year-on-year improvement in latices and 29% increase in chemicals and despite a 7% decline in synthetic rubber production, Zeon reported 29 Oct.

According to the statement, the elastomers business revised its sales prices during the quarter in response to increases in raw materials costs, particularly in synthetic rubbers.

Over the first half, Zeon said volumes, exchange-rate effects and higher prices more than offset hikes in raw materials costs and freight charges, with earnings growing 66% year-on-year to Yen6.0 billion.

However, quarter-on-quarter, Zeon noted a decline in earnings and volumes, due largely to production issues at raw materials suppliers and scheduled maintenance at major domestic plants.

Sequentially, operating income fell 41% from Yen3.8 billion reported in the first quarter, as synthetic rubber volumes dropped.

Speciality rubber volumes, said Zeon, declined both year-on-year and quarter-on-quarter due to adjustments for regular maintenance at its Tokuyama and Takaoka plants.

Meanwhile, synthetic rubber demand was impacted by partial production stoppages in the automotive industry during the three-month period.