Sumitomo earnings drop despite higher sales

Tire Business staff report

Kobe, Japan - Sumitomo Rubber Industries Ltd. (SRI) suffered a 94.5-percent in net income last year despite a 6.6-percent rise in sales.

SRI's net income fell to $10.4 million (Euro 8 million) as sales rose to $5.85 billion. Operating income fell 43.2 percent to $248.5 million.

SRI did not offer any commentary on the results, but the firm's balance sheet shows the cost of sales rose nearly 12 percent during the year. Selling, general and administrative expenses increased by 8.5 percent. Both categories were up more than the 6.6-percent sales rise.

SRI's tyre division reported a 4.7-percent rise in sales to $4.84 billion, but operating income fell 55.7 percent to $153.7 million, or 3.2 percent of sales.

Sales in North America grew 12.6 percent to $829.7 million. SRI sells tyres in North America under both the Sumitomo and Falken brands.

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Original article from Tire Business (a Crain publication)