Skip to main content
Sister Publication Links
  • Rubber & Plastics News
Subscribe
  • My Account
  • LogIn
  • News
  • Technology Focus
    • Features
    • Technical Papers
    • Analysis: Rubber mixing plants of the future
      Analysis: US probes dumping by ESBR suppliers
      Opinion: Tire labels stuck in a rut
      Analysis: NR pricing takes one step forward, two steps back
    • White paper: Role of tire innerliners in improving 'in-use rolling resistance'
      White paper: Why tire air retention matters now more than ever
      Nippon Soda: Use of 1,2-polybutadiene in CSM rubber applications
      Elastomers for Sustainability Top 10
  • Events
    • ERJ Events
    • ERJ Livestreams & Webinars
    • Industry Events
    • Journey to Automation Awards 2020
      Sustainability: Top 10 E4S projects table
  • Maps & Reports
  • People
  • Directory
  • Digital Edition
  • Brainiac
MENU
Breadcrumb
  1. Home
  2. News
November 17, 2017 12:00 AM

Sumitomo earnings drop amid “soaring” raw material prices

Shahrzad Pourriahi
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Kobe, Japan — Sumitomo Rubber Industries Ltd. (SRI) suffered double-digit drops in operating and net income for the quarter and nine months ended 30 Sept, despite double-digit gains in sales revenue.

    Sumitomo cited "soaring" raw materials prices for the drops in earnings during the reporting periods, whereas the company experienced unit sales and revenue gains in its tire business both domestically and abroad.

    For the quarter, operating income fell 30% to $79.4 million (€67.2 million) on 22% higher sales of $1.94 billion, dropping the operating ratio nearly three points to 4.1%. Net income fell to $41.9 million.

    For the nine months, operating income dropped 27.9% to $270.5 million on 15.7% higher sales of $5.58 billion. Net income fell 38% to $153.3 million.

    SRI said business in its tire division was up domestically, where it benefited from higher vehicle output and enhanced OE positions and expanded performance tire demand in the aftermarket.

    The division also benefitted overseas, where economic expansion in key regions — including Europe and China — helped push sales. The first-time inclusion of revenue from the British tire sales company Micheldever Group Ltd. contributed to growth as well.

    Sales in North America grew 12.3% during the nine-month period to $1.01 billion, SRI said.

    SRI credited its efforts to the implementation of various group-wide profitability initiatives under its "Vision 2020" strategy, which sought, in part, to counter the negative effects of higher raw materials costs.

    RECOMMENDED FOR YOU
    Trelleborg acquires Dutch composite hose supplier
    Trelleborg acquires Dutch composite hose supplier
    Conti hose & line unit zeros in on low-emission mobility
    Conti hose & line unit zeros in on low-emission mobility
    Cabot expands sustainable rubber operations in Malaysia
    Cabot expands sustainable rubber operations in Malaysia
    Free Newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Get the latest news impacting the European rubber industry, from breaking news to razor-sharp analysis, in print and online.

    Subscribe now
    Connect with Us
    • LinkedIn
    • Twitter
    • Youtube

    Logo
    Contact Us

    @ 2019 European Rubber Journal. 
    European Rubber Journal is published bi-monthly by NUERJ Ltd.

    Registered Office: Castle House, 89 High Street,
    Berkhamsted, Hertfordshire HP4 2DF, United Kingdom. 

    Tel. + 44 (0)203 196 0141 

    Registered No. 13104613 England

    Email: [email protected]

    Website www.european-rubber-journal.com

    Customer service 

    Tel. + 44 (0)203 196 0141 

     

    Resources
    • About us
    • Contact Us
    • Advertise with Us
    • Media Kit
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
    • Technology Focus
      • Features
      • Technical Papers
    • Events
      • ERJ Events
      • ERJ Livestreams & Webinars
      • Industry Events
    • Maps & Reports
    • People
    • Directory
    • Digital Edition
    • Brainiac