KOBE, Japan (Aug. 13, 2008) — Sumitomo Rubber Industries Ltd. (SRI) suffered double-digit drops in operating and net income in the first half despite a 12.1-percent increase in sales.
For the six months ended June 30, SRI reported a 17.7-percent drop in operating income to $136.2 million and a 74-percent plunge in net earnings to $20.3 million on sales of $2.72 billion.
SRI, which controls the Dunlop tire brand in Japan and throughout most of Asia, did not comment on the results. The profit/loss statement, however, showed 15.5 and 41 percent jumps in the cost of sales and non-operating expenses, respectively.
The company's tire division saw operating income slide 40.7 percent to $72.5 million as sales grew 8.6 percent to $2.2 billion.
The firm's sales outside of Japan increased 21.6 percent during the period to $1.34 billion, including a 35-percent jump in North America to $442 million. SRI sells Sumitomo-brand tires in North America through Treadways Corp. and Falken-brand tires through Falken Tire Corp.