TOKYO—Denka Corp. has raised the earnings forecast for its elastomers and infrastructure solutions business, due mainly to a strong pricing development in the chloroprene rubber segment.
For the full year, the business—which includes CR and cement production—is set to deliver an operating income of $25.3 million, up from an earlier outlook of $18.1 million announced in August.
In an Nov. 8 statement, Denka linked the expected growth to a decline in the prices of CR raw materials, such as coke, compared to the August forecast.
While there was no change in demand assumptions, Denka said it expected the market to return to 2019 levels.
"Sales volume and price increases should increase on par with (the) August forecast, while positive impact is expected due to the weakening yen," it added.