Elastomer Costs Equal Share Woes for Zeon Corp
Shares in Japanese synthetic rubber manufacturer Zeon Corp have experienced the largest fall in more than a decade after the company slashed its profit forecast; this decision was taken ahead of expected profits at its elastomer business falling below those previously anticipated. The stock dropped 82 yen (£0.39), or 15 per cent, to 461 yen (£2.21) on the Tokyo Stock Exchange, the largest single decrease the company has experienced since December 22, 1997.
The Tokyo-based company reduced its net income forecast for the year ending March 31 by 35 per cent to 17.8 billion yen (£85 million), as it was unable to increase prices on elastomer, the synthetic rubber used in tyre production, to offset rising raw material and fuel prices. Other factors also reduced profit, and in total Zeon Corp stock has lost 32 per cent of its value this year.