TOKYO—Zeon Corp.'s elastomers business has seen a year-on-year decline in operating income despite higher sales in the fiscal year ending March 31.
Full year net sales rose 2 percent for the segment to about $18 billion, helped by a 1 percent increase in rubber revenues at $12.5 billion, Zeon reported April 26.
Sales increased for the year despite 1 percent decline in volumes to 616,000 metric tons, which included a 1 percent drop in rubber volumes and a 5 percent decrease in latex volumes.
The Japanese supplier also posted a 20 percent year-on-year drop in operating income at $161 million, impacted by a fluctuation in raw material and a decline in formulated selling price.
For the fiscal year started April 1, Zeon expects further declines within its elastomers business.
Total sales for elastomers, the company expects, will fall about 4 percent to $157.7 million, with operating income set to decline 19 percent to 131 million.
The company release did not offer a reason for the expected declines this year.