Higher costs drive down Sumitomo’s Q1 earnings

Kobe, Japan — Sumitomo Rubber Industries Ltd.’s operating income dropped 12.6% for the quarter ended 31 March as increased costs for raw materials ate into the margin.

Operating income fell to $104.1 million (€96 million), while sales rose 7.7% to $1.69 billion, yielding an operating ratio of 6.2%, down from 7.6% a year ago. Increased materials’ costs impacted earnings by more than $60 million.

Net earnings rose 4.9% to $75.3 million.

On a regional basis, SRI’s sales revenue in North America jumped 28.6% to $288 million, an increase…

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