Investment Bridge Announces Investment Opinion: Bridge Report on ZEON CORPORATION: Higher Profits Despite Lower Sales, Decrease in Both Sales and Profits This Year

NOTE TO EDITORS: The following is an investment opinion issued by Investment Bridge

TOKYO--()--Investment Bridge, one of Japan’s leading independent investor relations services companies, has released a “Bridge Report” on ZEON CORPORATION (TOKYO First section: 4205) reviewing its earnings results for the fiscal year March 2016 and estimates for the fiscal year March 2017.

Report Highlights

  • Sales declined by 3.9% year-on-year to JPY295.6 billion but operating income rose by 5.7% year-on-year to JPY29.9 billion during the fiscal year March 2016.
  • Sales are projected to decline by 5.3% year-on-year or JPY15.6 billion to JPY280.0 billion and Operating income is expected to also fall by 6.2% year-on-year or JPY1.9 billion to JPY28.0 billion in the fiscal year March 2017.
  • Dividend payment is expected to be raised by JPY1 to JPY16.00 per share, for an anticipated dividend payout ratio of 18.7%.
  • Estimates issued at the start of the term had called for increases in both sales and profits, but weaker demand for products of both the elastomer and specialty material businesses from the second half onwards contributed to weaker than expected earnings. The operating environment in the current term, which is also the final year of the “SZ-20 Phase II” management plan, appears difficult given the strengthening of the yen. A determining factor behind Zeon’s performance will be how much the completion of the second phase construction at the Singapore Plant and other factors can contribute during the second half of the term.

ZEON CORPORATION is a petrochemical manufacturer that boasts of numerous products with large shares of global markets, including synthetic rubber used in automobile parts and tires, and synthetic latex used in medical gloves. The Company’s strengths include its innovative technology development function, research and development structure, and high earnings generation capability. The ZEON Group is comprised of the parent company, 57 subsidiaries and 10 affiliated companies. The Company operates manufacturing facilities in various locations in Japan and in overseas markets.

To view the full report, please go to the website at the URL listed below.

About Bridge Report:
Bridge Report is produced by Investment Bridge Co., Ltd. and provides accurate and objective information about the earnings, business strategies, and other information of publicly traded Japanese companies. Investment Bridge was founded in August 2000 and is one of Japan’s leading independent IR support services companies. Investment Bridge specializes in providing various solutions to Japan’s publicly traded companies with the goal of expanding our clients’ shareholder base and liquidity through increased recognition and understanding of companies.


Investment Bridge Co., Ltd.
Kaoru Hosaka, +81-3-5225-3077

Release Summary

Bridge Report on ZEON CORPORATION: Higher Profits despite Lower Sales, Decrease in Both Sales and Profits This Year


Investment Bridge Co., Ltd.
Kaoru Hosaka, +81-3-5225-3077