Sumitomo Rubber posts sharp drop in first half earnings

Tokyo - Sumitomo Rubber Industries Ltd (SRI) on 7 Aug reported first half sales down 2.5% year-on-year to Yen572,192 million and business profit 33.1% lower at Yen28,310 million.

Sales at SRI’s tire business fell 1.6% year-on-year to Yen488,329 million, while business profit decreased 34.7% to Yen22,205 million.

Sport business revenue dropped 9.6% year-on-year to Yen64,686 million, with business profit slumping 42.0% to Yen4,044 million.

The ‘industrial and other products’ business reported a 0.9% dip in sales to Yen19,177 million and business profit down 59.5% at Yen2,069 million.

Commenting on trading conditions, SRI said tire sales volumes were impacted by “market stagnation caused by inflation and other factors as well as its discontinuation of low-profit products.”

Meanwhile, an increase in the unit price of tire raw materials over the last 12 months “reduced profit as compared to the same period a year ago.”

More to follow…