Sumitomo Rubber results up as Dunlop Europe launch boosts sales

Tokyo — Sumitomo Rubber Industries (SRI) has reported higher sales and profits for the first quarter of 2026, supported by the start of Dunlop-brand tire sales in Europe.

For the quarter ended 31 March, group sales revenue increased 5% year-on-year to Yen302.17 billion (€1.6 billion), while business profit rose 18.8% to Yen16.795 billion, SRI reported 15 May.

Within the tire business, sales revenue increased 6.3% year-on-year to Yen259.918 billion, while business profit rose 35.0% to Yen14.762 billion.

Group tire sales volume, however, “fell below the level of the same period of the previous fiscal year overall,” despite increased sales from the January launch of Dunlop tire sales in Europe.

According to SRI, “market conditions remained sluggish and geopolitical tensions in the Middle East weighed on demand.”

In Japan’s OE market, SRI said sales volume exceeded the prior-year level despite a decline in car production caused by factors such as the situation in the Middle East.

Volumes, SRI said, were helped by recovery from production reductions at some car manufacturers in the previous year.

In the domestic replacement market, sales volume declined due to “a reaction to temporary demand ahead of price increases” during the same period last year, as well as lower orders for offtake products.

In overseas OE markets, sales volume “fell slightly below” the prior-year level.

Sales to China returned to growth after a prolonged decline, but North American sales “declined significantly amid sluggish market conditions,” SRI said.

In overseas replacement markets, sales in Asia-Oceania declined despite “various sales promotion measures.”

Here, the group said it maintained a “profitability-focused” strategy and some countries experienced demand pull-forward ahead of earlier price increases.

Europe was a bright spot, with sales volume increasing “significantly” following the launch of Dunlop-brand tire sales.

In the Americas, North American replacement sales declined “partly due to the impact of tariffs,” while South American sales fell as imports from outside the region increased and “price competition intensified.”

SRI’s sports business reported a 0.8% decline in sales revenue to Yen32.2 billion, while business profit dropped 47.4% to Yen914 million.

The industrial and other products business posted a 6.6% decline in sales revenue to Yen10 billion, while business profit fell 22.6% to Yen1.1 billion.

SRI said gains in civil engineering and marine products, medical rubber products and vibration-control dampers were offset by lower sales of architectural flooring, office equipment rubber parts and artificial sports turf.

Business profit in the segment also declined, “mainly due to lower performance in rubber parts for office equipment, rubber gloves, and architectural flooring,” it added.