Sumitomo reports modest gains, “severe” markets

Kobe, Japan —Sumitomo Rubber Industries Ltd. has reported marginal increases in operating and net income as well as a 7.6-percent sales improvement in its third quarter results.

Earnings improvements were considerably below those achieved in the first six months, figures from the Japanese rubber manufacturer show. The sales gain, however, was on par with the earlier two quarters.

Despite the lower third-quarter gains, Sumitomo’s operating and net income for the nine months ended 30 Sept. were up 14.2 percent to $476.7 million (€380.6 milloin) and 28 percent to $307.8 million. Sales rose 8.2 percent to $5.59 billion.

Sumitomo said its results reflected slowing economic growth in Japan, China, ASEAN and Russia, and reduced natural rubber prices and improvements in the export environment due to yen depreciation.

Tire unit sales in overseas replacement markets exceeded the 2013 level due to yen depreciation and improved sales in each country’s market, despite intensifying price competition, the company report said.

Overall, though, the environment continued severe due to factors such as intensified competition in overseas tire replacement markets, the company reported.