Zeon reported a 115 percent jump in operating profit from its elastomer business in the first quarter of fiscal 2025, even as net sales across the segment stagnated, squeezed by a stronger yen and lower selling prices reflecting declining raw material costs.

Operating profit in the elastomer unit—including synthetic rubbers used in tyres—rose to ¥4.2 billion from ¥2.0 billion last quarter, as post-maintenance sales volumes improved and fixed costs dropped.

Segment revenue stood flat at ¥58.1 billion, down 4 percent year-on-year, with synthetic rubber sales slipping 2 percent to ¥44.5 billion. Chemicals revenue dropped 12 percent to ¥9.0 billion, while latexes rose 3 percent to ¥3.5 billion.

“Despite the impact of lower selling prices due to falling raw material prices and yen appreciation, both net sales and OP income were up due to higher shipments following the completion of regular maintenance and a reduction in headquarters expense allocation,” the company said in its earnings presentation.

For the full year, Zeon held its net sales forecast at ¥415.0 billion, up 4 percent year-on-year, but cut its operating income outlook to ¥30.5 billion, down 9 percent. The company also reaffirmed its ¥72 per share dividend for FY2025 and continued its 10 million share or ¥10 billion buyback programme.

While sales of general-purpose rubbers declined year-on-year due to export sluggishness and plant shutdowns, Zeon said shipments had rebounded quarter-on-quarter after completing maintenance at its Tokuyama and Singapore plants. Speciality rubbers also posted sequential growth, despite weak overseas demand.

Net profit for the quarter rose to ¥7.5 billion, up 24 percent from the previous quarter, supported by higher gains from investment securities and reduced impairment losses.

Zeon remains cautious for the year’s second half, citing US tariffs, volatile raw materials, and yen fluctuations. The company flagged potential shipment declines for optical films and synthetic rubbers in H2 but expects a recovery in FY2026.

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Japanese tyre maker cites weak Asian demand, raw material cost pressures

Japanese tyre maker Sumitomo Rubber Industries Ltd posted a 34.7 percent drop in first-half business profit from its core tyre division, weighed down by weak demand from Chinese automakers and higher raw material costs.

The company's tyre business profit fell to 22.2 billion yen for the six months ended 30 June, down from 34.0 billion yen a year earlier, whilst tyre sales revenue declined 1.6 percent to 488.3 billion yen.

Sumitomo Rubber, which owns the Falken brand and recently acquired Dunlop trademark rights in key markets, said overseas original equipment sales dropped significantly due to production cuts by automobile manufacturers in Asia, particularly China.

The challenging market conditions come as major Chinese tyre brands have launched aggressive sales initiatives, creating a tough competitive environment for international brands, including Sumitomo's products.

"Overall sales volume in the Asia-Oceania region was also on par with the level of the same period of the previous fiscal year," the company said in its earnings statement, highlighting the difficulty of maintaining growth in its largest regional market.

In Europe, the company focused on profitability amid intensified price competition, leading to an overall decline in sales volume despite growth in all-season tyres under its Falken brand.

North American performance was mixed, with the flagship Wildpeak series maintaining strong sales but overall regional volumes falling below prior year levels due to continued market share expansion by competitors' low-priced products.

South America provided a bright spot, with sales volume increasing as the company worked more flexibly with distributors and benefited from reduced competitor imports following the rapid depreciation of the Brazilian currency.

The domestic Japanese market showed contrasting trends, with original equipment sales significantly exceeding prior year levels due to production cutbacks at some manufacturers during the same period last year. However, replacement market sales fell due to the discontinuation of low-priced products and declining orders for offtake products.

Raw material cost pressures continued to squeeze margins, with the company noting that "the effect of an increase in the unit price of tyre raw materials reduced the profit as compared with the same period a year ago."

Despite the challenging first half, Sumitomo Rubber maintained its full-year forecast for tyre business profit at 84.0 billion yen, up 1.2 percent from its previous guidance, citing expectations of declining raw material prices and yen depreciation benefits

The company completed its acquisition of Dunlop trademark rights for four-wheel vehicle tyres in Europe, North America and Oceania in May, launching operations in North America and Oceania as its first step in building global brand management around the Dunlop name.

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Bridgestone Americas has launched a year-long celebration honouring the 125th anniversary of its legendary Firestone brand, marking over a century of leadership in performance, durability and value. Running through August 2026, the milestone will be commemorated with new product releases, immersive experiences and special activations that highlight Firestone’s enduring legacy and vision for the future of mobility.

The anniversary festivities began with an off-road expedition through Wyoming’s Bighorn National Forest, echoing the early 20th-century ‘Vagabonds’ journeys undertaken by founder Harvey Firestone alongside figures like Thomas Edison and Henry Ford. These modern adventures pay tribute to Firestone’s spirit of exploration and rugged reliability, with more storytelling experiences planned in remote landscapes across America. Throughout the celebration, Firestone will roll out a series of advanced tyres designed to enhance performance and dependability. The lineup, set to debut between late 2025 and 2026, will span consumer and commercial segments, reinforcing the brand’s commitment to cutting-edge solutions.

Firestone’s storied motorsports history, which began with its first Indianapolis 500 win in 1911, remains central to its identity. As the exclusive tyre supplier for the NTT INDYCAR SERIES for 26 consecutive seasons, the brand will celebrate its 125th anniversary during the 2026 season, including special activations at the 110th Indianapolis 500.

Firestone will showcase its heritage and innovations at major industry events, featuring The Firestone Journey – a travelling exhibit blending rare archival artifacts with interactive digital experiences. Key appearances include King of the Hammers in California, Overland Expo West in Arizona and the iconic Indy 500, offering fans a glimpse into the brand’s transformative impact on American mobility.

Founded in 1900 by Harvey S Firestone, the company revolutionised transportation with breakthroughs like the first pneumatic tractor tyre and the ‘Ship By Truck’ movement. After merging with Bridgestone in 1988, Firestone solidified its global presence while maintaining its reputation for quality and innovation. Today, with over 75 Indy 500 victories and best-selling tyre lines, the brand continues to embody its founder’s vision of reliability and forward-thinking solutions.

Scott Damon, Chief Executive Officer, Bridgestone West and Group President, Bridgestone Americas, said, “Founder Harvey S Firestone was a pioneer whose life, legacy and commitment to customers remain engrained in our DNA today. We continuously strive to innovate – improving our customers’ lives with our products, services and solutions – and adapt to the evolving needs of tomorrow.”

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The Tyre Recovery Association (TRA) has responded to the Environment Agency’s recently published review on waste tyre exports from the UK, describing it as an important step toward regulatory reform. The 170-page report, which examined the export of used tyres – particularly to India – identified gaps in the current regulatory framework and enforcement capabilities. The TRA acknowledged the report as a constructive analysis that addresses long-standing challenges, including improved tracking of waste tyre exports, and has pledged to collaborate with DEFRA and the Environment Agency to implement these measures.

While welcoming the progress, the TRA emphasised that further action is necessary to establish a circular economy and strengthen domestic tyre processing capacity. The association urged policymakers and regulators to view the report as an interim measure rather than a final solution.

Peter Taylor OBE, Secretary General, Tyre Recovery Association, said, “The TRA welcomes this report; it is a clear and helpful analysis of UK waste tyre exports. It sets out the shortcomings of the current regulatory framework and the EA’s ability to meaningfully enforce these regulations. This is a true step forward after several years of inaction. It includes welcome initiatives on tracing and tracking UK export of waste tyres; the TRA will work with DEFRA and EA to deliver on these. It is important, however, that the policy creators and enforcers [DEFRA and the EA] recognise this is just a staging post on the road to the full reforms needed. We will continue to work with the Government to achieve a zero-waste circular economy and sustain the UK’s capability to process end of life tyres.”

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Hankook Tire, the global tyre leader and exclusive tyre supplier for the ABB FIA Formula E World Championship, has won the ‘Best Fan Experience of the Year’ award for Season 11. This marks the company’s second victory since Season 9, recognising its innovative marketing efforts and immersive fan engagement initiatives.

Throughout the season, Hankook Tire showcased its cutting-edge EV racing tyre technology as part of Formula E’s Allianz Fan Village, attracting approximately 50,000 visitors across events in the US, Germany and London. The company strengthened its connection with motorsport enthusiasts through interactive experiences, including digital racing games, creative workshops and themed photo zones. Online campaigns further amplified engagement, offering fans exclusive race-day tickets and digital interactions.

A standout activation was the ‘Hankook X FE Tube Shop’, a beachside pop-up during the Miami E-Prix, where fans enjoyed unique recreational activities near the race venue. The initiative generated around 120,000 online interactions, significantly enhancing brand visibility. Hankook also reinforced its EV leadership through high-impact content, such as the film Electrified: Hankook iON X Formula E Technology, featuring its GEN3 Evo iON Race tyre reaching speeds of 322 kmph. Additional collaborations, including a generative AI-powered London E-Prix feature and a teaser linking Formula E with the World Rally Championship, expanded global fan engagement.

Behind the scenes, Hankook provided 11 celebrities with an exclusive experience during Miami’s Evo Session, letting them test Formula E race cars equipped with iON tyres under extreme conditions. The company also advanced sustainability in motorsports by integrating eco-friendly materials and energy-efficient technologies into its tyre compounds.

Supporting diversity in racing, Hankook partnered with the FIA’s ‘Girls on Track’ programme, offering over 1,000 aspiring female drivers hands-on racing experiences at the 2025 Jakarta E-Prix – the initiative’s largest participation to date.

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