Zeon Elastomers Business Reports 31% Rise in First Quarter Earnings

Zeon Corp.’s elastomers business has reported a 31% year-on-year increase in operating income, with flat sales in the first quarter of its financial year. The business unit posted an operating income of Yen5.5 billion (€30 million) for the three months ended 30 June, up 31% year-over-year and 33% quarter-over-quarter. Division sales remained flat at Yen58.2 billion. Within the business unit, synthetic rubbers saw a 25% year-on-year increase in operating income to Yen5.2 billion, despite 1% lower sales of Yen44.3 billion. Specialty rubbers demand remained firm, mainly for domestic applications, while general-purpose rubbers saw volumes decline due to feedstock availability. Synthetic latex and chemicals returned to profit with operating income of Yen300 million, up from a loss of Yen600 million the year before, on 2% higher sales of Yen13.9 billion. The segment’s revenue performance was affected by production being aligned with feedstock availability, but this was offset by selling price revisions reflecting higher raw material prices and yen depreciation. Operating income grew due to cost-reduction efforts and the impact of inventories at the end of the previous fiscal year.