Sumitomo Rubber year-to-date earnings dip on lower volumes

Kobe, Japan – Sumitomo Rubber Industries (SRI) has reported a sharp decrease in business profit (earnings) for the first nine months of 2025, amid weaker sales volumes and higher raw material costs.

The Japanese group posted a 21% year-on-year decline in earnings to Yen48.5 billion, on 1.5% lower sales of Yen861.6 billion, announced SRI 12 Nov.

SRI linked the decline in earnings to lower volumes, due to stagnation and inflation as well as factors such as the discontinuation of some low-profit products.

The trend, however, reversed in the third quarter with earnings up 5.1% year-over-year at Yen20.2 billion, on slightly higher sales of Yen289.4 billion.

Over the first three quarters, tire segment revenues slipped 1.1% year-on-year to Yen740.2 billion, while earnings dropped 20.0% to Yen40.9 billion.

Here, SRI said domestic OE sales rose sharply from last year’s level, while domestic replacement demand weakened after discontinuing low-priced products.

Overseas OE sales fell, mainly due to lower orders from car makers in China.

Replacement sales declined in Asia and Oceania amid price competition from Chinese brands, and in Europe as SRI focused on profitability.

All-season tire sales under the Falken brand grew in Europe while North American sales fell partly due to revised terms with “a major customer” and tariff pass-through.

In South America, sales volume increased on the back of stronger distributor ties and reduced imports from rivals.

Revenue in the sports segment dropped 4.6% to Yen93.2 billion, while earnings decreased 41.3% to Yen4.7 billion.

Golf equipment sales rose in Japan and the US, helped by strong “Srixon” sales but declined in South Korea. Tennis goods sales grew in Japan, Europe and North America.

Revenue in industrial and other products slipped 0.8% year-on-year to Yen28.3 billion, but business profit climbed 30.7% to Yen3.0 billion.

Gains came from strong domestic sales of medical rubber products and steady vibration control demand, offsetting the withdrawal from the gas pipe business and weaker sales of rubber parts for office equipment, and gloves.