In face of logistics woes, Zeon reports increased sales in Q2

TOKYO—Zeon Corp.'s elastomers business has seen year-on-year growth in the second quarter despite lower volumes and logistics woes.

The business, which contributes more than half of overall group sales, saw revenue increase 47 percent to $436 million (Yen50.2 billion/€380 million) in the three months to end of September, due mainly to "raw material price-linked formula and price revisions."

The business, which includes synthetic rubbers, latexes and chemicals, reported year-on-year sales growth in all product groups, Zeon announced Oct. 29.

Revenue from of rubbers increased 49 percent to $285 million, while latexes saw a 113-percent increase to $59.7 million. Chemical sales rose 28 percent to $87.8 million over the period.

In terms of volumes, the segment was down 2 percent compared to the second quarter of 2020, and 7 percent quarter-on-quarter, mainly as a result of shortage of containers and plant shutdowns, Zeon said.

While synthetic rubber volumes were up 4 percent year-on-year, latexes were marginally down and chemicals 19 percent lower than the second quarter of 2020.

Segment operating income was up 404 percent year-on-year at $33.4 million, but down 21 percent compared to last quarter due to higher raw materials prices.

Zeon said it reported the sequential decrease in operating income "despite an improvement in unit selling prices" following the increase in the price of raw materials.

Continuing from first quarter, shipments to Europe and the U.S. have been delayed due to the container shortage, it explained.