Donghai Carbon's operating profit in the first three quarters increased by 77% year-on-year

Japan Tokai Carbon announced in its latest carbon black business report that operating profit in the first three quarters of 2023 increased by 77% year-on-year to 16 billion yen (approximately RMB 768 million), while sales also increased by 7.5%, reaching 110 billion yen (approximately RMB 5.33 billion).

Despite facing unfavorable factors such as declining sales, Donghai Carbon has successfully achieved a positive breakthrough in performance. Donghai said that sales remained relatively stable year-on-year, which is gratifying.

The Donghai report detailed that carbon black production was affected by some consumer production adjustments and a decline in demand for replacement tires for trucks and buses. However, these negative impacts have been partially offset by the rebound in demand for new cars and related products and increased sales to non-tire segments.

At the same time, due to the transfer of key investment costs and sales prices of environmental equipment in North America, as well as the improvement of productivity, the operating profit of the Donghai carbon black business has been further improved.

Data showed that the profit growth of Donghai Carbon and Carbon Black business reached 9.3 billion yen, successfully offsetting the negative impact of 3.2 billion yen caused by declining sales and other factors in the past nine months.

North America remains the largest market for Donghai carbon black products, with sales reaching 54.397 billion yen in the first three quarters. By comparison, sales in Japan were 30.702 billion yen, Asia was 22.647 billion yen, and Europe was 2.205 billion yen. This data once again confirms the strong position of the East China Sea in the international market.