Sumitomo earnings drop despite 12% sales gain
Kobe,
Japan (Aug. 13, 2008) -- Sumitomo Rubber Industries Ltd. (SRI) suffered
double-digit drops in operating and net income in the first half
despite a 12.1-percent increase in sales.
For
the six months ended June 30, SRI reported a 17.7-percent drop in
operating income to $136.2 million and a 74-percent plunge in net
earnings to $20.3 million on sales of $2.72 billion.
SRI, which controls the Dunlop tire brand in Japan and throughout most of Asia,
did not comment on the results. The profit/loss statement, however,
showed 15.5 and 41 percent jumps in the cost of sales and non-operating
expenses, respectively.
The company's tire division saw operating income slide 40.7 percent to $72.5 million as sales grew 8.6 percent to $2.2 billion.
The firm's sales outside of Japan increased 21.6 percent during the period to $1.34 billion, including a 35-percent jump in North America to $442 million. SRI sells Sumitomo-brand tires in North America through Treadways Corp. and Falken-brand tires through Falken Tire Corp.
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