Zeon reports dip in Q3 elastomers profits

TOKYO—Zeon Corp.'s elastomers unit has seen a decline in third quarter operating income, due to a range of market, operational and cost factors, the company reported Jan. 31.

Over the final three months of 2022, the synthetic rubber, latexes and chemicals unit posted a 43-percent year-on-year earnings decline, to $22 million, on 14-percent higher sales of $426 million.

The Japanese group linked the reversal to a drop in sales volumes, price adjustments, inventory management and an increase in general costs, including a significant rise in energy prices.

In terms of revenue, Zeon's synthetic rubber operation reported a positive development, posting sales of $312 million, up 27 percent year-on-year.

The group's latexes and chemicals businesses, however, reported declines of 36 percent and 4 percent, posting revenues of $26.7 million and $74.6 million respectively.

Sales volumes declined across all segments, with synthetic rubber volumes down 14 percent compared to last year, due mainly to repairs at plants and inventory adjustments.

Chemicals volumes fell 37 percent year-on-year due to "reactionary decline from price adjustments," while latex volumes decreased 30 percent due to "excess inventory for latex gloves."