Sumitomo Rubber profits fall despite higher sales for 2006

Kobe, Japan -Sumitomo Rubber Industries Ltd., bouyed by sales outside of Japan, reported 4.1-percent higher sales and 7.6-percent better net earnings in fiscal 2006 over 2005.

Operating income, on the other hand, fell 26.3 percent to $316.3 million, dropping the operating earnings ratio three full percentage points to 6.9 percent. The company did not offer any commentary on its results, just the raw numbers.

For the year Sumitomo reported sales of $4590 million and net income of $237.2 million, good for a 5.2-percent net earnings ratio.

The company's sales growth took place almost entirely outside of Japan. Sales in North America, for example, rose 11.2 percent to $554 million last year. The firm also experienced double-digit sales growth in Asia and other areas, whereas business in Europe fell 27.3 percent.

Capital expenditures rose 11.6 percent to $413.5 million.

From ire Business (A Crain publication)