KOBE, Japan (May 9, 2014) — Sumitomo Rubber Industries Ltd. (SR) reported double-digit gains in sales and earnings for the quarter ended March 31.
Sumitomo did not elaborate on the reasons for its earnings improvements, other than the increased sales and reduced natural rubber prices.
For the quarter, operating income jumped 23.5 percent to $172.3 million on 16.4-percent higher sales of $1.76 billion. Net income rose 21 percent to $101.4 million. The changes yielded an operating ratio of 9.7 percent, up from 9.1 percent a year ago.
The tire division reported operating income of $154.7 million on sales of $1.54 billion, gains of 23.5 and 16.4 percent, respectively. SRI attributed the gains to volume sales growth domestically and internationally, especially in China. By contrast sales volume fell in Thailand along with a deteriorating economy.
The company did not break down its results by geographic region.
Based on the gains in the first quarter, SRI boosted its full-year earnings forecast by about 4 percent on 1.2-percent greater sales, for an earnings ratio of nearly 9.9 percent.