TOKYO—Kuraray Co. Ltd. has lowered the outlook for its isoprene business unit amid increasing costs and low demand.
The unit, which manufactures hydrocarbon-based chemicals and elastomers, is now forecast to report a loss of about $48 million (Yen 7.0 billion) for the full year, down from an earlier estimate of a $17.9 million loss and profit of $34.3 million realized last year, the company reported Aug. 9.
Full-year revenue is set to come in at $480 million, as compared to a forecast of $514 million in May.
For the first half, the business unit registered a loss of $18.5 million, down from a profit of Yen $19 million in the same period of last year.
Sales for the period fell marginally to $218 million.
Segment results were affected by "deteriorating market conditions" as well as a decrease in sales volume, the company said. It linked lower volumes primarily to weakening demand, a trend that started in the second half of 2022, as well as to inventory adjustments.
Despite gains from price adjustments, the segment was further hit by depreciation at its Thai site—which started operations earlier this year—and higher raw materials, fuel and exchange costs.
