KOBE,Japan (Dec. 26, 2001)—Sumitomo Rubber Industries Ltd. expects to report a net loss in 2001, due in part to special charges related to stock losses and fixed assets.
The Kobe-based tire maker said it will fall nearly $67 million into the red for the year ending Dec. 31, down from an earlier forecast of $47 million in earnings.
In addition, the company said 2001 sales would be close to $3.4 billion, a 1.6-percent drop from earlier forecasts, due in part to declining demand resulting from the weak global economy.
For the coming year, Sumitomo will cut capital investments by 25 percent and reduce personnel, production and other costs by 3 percent. The firm also will restructure its underperforming non-tire businesses, including its sporting goods, industrial products and European bedding activities.