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%, to 461 yen (£2.21) on the Tokyo Stock Exchange, the largest single decrease the company has experienced since Dec. 22, 1997.
The Tokyo-based company reduced its net income forecast for the year ending Mar. 31 by 35% 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% of its value this year. (Tyres & Accessories/Staffordshire, U.K.)
