Why did Tokai Carbon's carbon black business report a 28.4% year-on-year drop in operating income for the first quarter?

Tokai Carbon attributed the 28.4% year-on-year decline in operating income for its carbon black business to reduced sales volume caused by production adjustments by a major tire manufacturer, as well as increased depreciation costs following the start of operations at its new plant in Thailand; although the newly consolidated Thai subsidiary contributed to results, its impact was insufficient to offset the overall decline.

What drove the 13.6% year-on-year sales increase in Tokai Carbon's fine carbon business, and why did its operating income still fall 19.8%?

Sales in Tokai Carbon's fine carbon business rose 13.6% year on year to ¥16.4 billion, driven by higher sales volumes of solid silicon carbide (SiC) focus rings — a key product for the memory semiconductor market; however, operating income for the segment dropped 19.8% year on year to ¥2.2 billion due to sluggish demand in the SiC power semiconductor market.

Carbon black earnings slip at Tokai Carbon amid reduced tire demand

May 26, 2026

Tokai Carbon reported a 28.4% drop in carbon black operating income due to reduced tire demand and Thailand plant costs, while fine carbon sales rose despite lower profitability from SiC market slowdowns.

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Carbon black earnings slip at Tokai Carbon amid reduced tire demand

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