Tokai Carbon’s carbon black sales remained flat in the first half of the year, but profits doubled

　　As reported by the "European Rubber Journal," Japan's Tokai Carbon Group recently released its performance report for the initial half of this year, revealing robust performances in core businesses, particularly in carbon black. As of August 8, the group's operating profit witnessed an impressive 30% year-on-year surge, reaching 21.7 billion yen (equivalent to 136 million euros), while sales concurrently increased by 14% to 178 billion yen.

　　The report highlighted that Tokai Tanso Group's earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by a commendable 19%, showcasing a steady upward trend, albeit just shy of 40 billion yen.

　　While total sales slightly missed the earlier estimate of 198 million yen by 10%, the operating profit exceeded the May estimate, registering an 8.7% increase. The Donghai Carbon Group attributed this rise in operating income and profits primarily to "the steady growth of various main businesses with carbon black as the core and the increase in foreign exchange earnings."

　　Within the carbon black business unit, sales in the initial half of the year surged by an impressive 15% year-on-year, amounting to 74 billion yen, with operating profit more than doubling to 10.7 billion yen. Tokai Carbon emphasized that sales of carbon black for tires maintained a steady year-on-year performance, "despite the impact of production adjustments by some customers." The group also noted that, notably in North America, productivity enhancements and the absorption of environmental investment costs contributed to the surge in sales and operating profit. Additionally, the group adopted a strategy of implementing "appropriate price increases" to account for rises in environmental investment and raw material costs, thereby enhancing profit margins.

　　While the demand for carbon black in the replacement tire market is gradually picking up, particularly in the replacement tire segment for trucks and buses, the original equipment tire market for new cars is witnessing a recovery in demand. Tokai Carbon Group acknowledges the short-term uncertainty surrounding the recovery of demand in the replacement tire market for carbon black. However, they express optimism regarding the more balanced supply and demand dynamics in markets like the United States, fostering a positive outlook for medium-term development prospects.

　　Overall, Tokai Carbon Group's commendable performance in the initial half of the year underscores the sustained growth momentum in its core businesses, reflecting a strong confidence in the future market landscape.