TOKYO—Denka Corp. has seen first-half losses nearly double at its Elastomers & Infrastructure Solutions division, due mainly to challenges within its chloroprene rubber (CR) business.
For the six months to end of September, the Elastomers & Infrastructure unit posted an operating loss of $19.4 million (¥3 billion), compared to a loss of $10.7 million the year before (based on 2023 average exchange rates), the Japan-based supplier reported Nov. 8. Sales within the division fell slightly to $364.8 million.
Denka linked the earnings decline to higher fixed costs, such as maintenance costs at its U.S.-based Denka Performance Elastomers subsidiary, as well as foreign exchange impacts.
Furthermore, it added, CR demand remained weak during the period, as pricing was impacted by stronger competition.
Sales volumes within the division, which also includes cement production, declined 0.8 percent year-over-year, mainly reflecting lower volumes within the cement segment as CR volumes remained flat.
Denka raised prices for CR products Sept. 2 by more than $500 per metric ton.
The group confirmed that it is still reviewing the performance of its CR operations, with "comprehensive measures" to be adopted once the review is over.
