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Denka Records Extraordinary Loss and Suspends U.S. Chloroprene Rubber Production

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Denka Records Extraordinary Loss and Suspends U.S. Chloroprene Rubber Production

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Denka Co ( (JP:4061) ) has issued an update.

Denka Company Limited has announced an extraordinary loss of approximately 16.1 billion yen due to an impairment loss at its U.S. subsidiary, Denka Performance Elastomer LLC (DPE). This loss is attributed to rising operational costs, staffing challenges, and declining production volumes at DPE’s chloroprene rubber manufacturing facilities. Consequently, DPE has suspended production indefinitely, considering all options for the business, including a potential sale. Despite these challenges, Denka will maintain its dividend forecast for the fiscal year ended March 31, 2025.

The most recent analyst rating on (JP:4061) stock is a Buy with a Yen3040.00 price target. To see the full list of analyst forecasts on Denka Co stock, see the JP:4061 Stock Forecast page.

More about Denka Co

Denka Company Limited operates in the chemical industry, focusing on the manufacture and sale of synthetic rubber. Its U.S. subsidiary, Denka Performance Elastomer LLC (DPE), is a key player in the production of chloroprene rubber, serving significant markets in North America.

Average Trading Volume: 387,101

Technical Sentiment Signal: Strong Sell

Current Market Cap: Yen165.9B

Learn more about 4061 stock on TipRanks’ Stock Analysis page.

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