Modules for an ongoing expansion of the Cancarb carbon black manufacturing facility in Medicine Hat are seen in the foreground of the plant in this May 2020 file photo. The company is reporting "steep" declines in sales due to the COVID-19 pandemic, but predicts modest recovery to year year.--NEWS PHOTO COLLIN GALLANT
cgallant@medicinehatnews.com@CollinGallant
The parent company of Cancarb in Medicine Hat reduced its whole-year sales forecast by one third this month as it presented its first quarterly financial report that included the coronavirus pandemic.
Tokai Carbon saw net sales across its product line fall by 32 per cent during the first six months of 2020, compared to early 2019, while operating income dropped close to 86 per cent over the same time.
The Tokyo-based company, which reports in Japanese Yen, recorded sales of equivalent to C$1.13 billion in the first six months of the year and an net income of C$69.7 million.
Those “severely depressed” sales in core areas of graphite and carbon black coincide with a steep decline in global steel and tire manufacturing related to COVID-19, it states.
Specific to carbon black, which the company produces in Medicine Hat, the Tokyo-based company predicts “moderate recovery” in North American sales to the end of the year.
A revised sales forecast expects sales revenue in the sector to be 34 per cent lower than originally predicted in February.
The global company, which also produces fine carbon and other industrial materials, also announced that it completed the acquisition of French-based smelting firm Carbone Savoie International SAS in late July.
