TOKYO—Slow demand for latex used in rubber gloves impacted Zeon Corp.'s elastomers business in the third quarter, despite an uptick in synthetic rubber sales.
For the quarter ended Dec. 31, 2023, the business unit reported a 2-percent year-on-year decline in revenue to $391.5 million (Yen 55 billion), reflecting a 22-percent drop in sales of latex and an 8-percent fall in chemicals.
Synthetic rubber sales, meanwhile, grew 2 percent year-on-year to about $300 million, Zeon reported.
Zeon linked the lower sales to "sluggish" latex shipment due to surplus distribution inventory, while adhesives market lacked strength in the chemicals business.
Segment operating income was down 12 percent year-on-year at $17.8 million, as Zeon was unable to pass on the increase in operating costs for chemicals to prices.
In terms of volumes, Zeon said shipments for synthetic rubbers and chemicals grew 13 percent each during the quarter, while latexes saw a 20-percent year-on-year decline during the three-month period.
