KOBE, Japan (Nov. 17, 2014) — Sumitomo Rubber Industries Ltd. reported marginal increases in operating and net income for the quarter ended Sept. 30 on 7.6-percent higher sales.
The third quarter earnings gains were considerably below those in the first and second quarters, SRI figures show, while the sales gain was on par with the earlier quarters.
Despite the lower third quarter gains, Sumitomo's operating and net income for the nine months ended Sept. 30 were up 14.2 percent to $476.7 million and 28 percent to $307.8 million. Sales rose 8.2 percent to $5.59 billion.
For the quarter, SRI's operating income edged up 0.6 percent to $135.7 million, while net earning rose 1 percent to $96 million. Sales rose to $1.94 billion.
Sumitomo said its results reflected slowing economic growth in Japan, China, ASEAN and Russia and reduced natural rubber prices and improvements in the export environment due to yen depreciation. Despite these factors, the environment continued severe due to factors such as intensified competition in overseas tire replacement markets.
On the positive side, overseas replacement market sales were up over the 2013 period due to a depreciating yen and improved sales in each country's market despite intensifying price competition. In OE business overseas, SRI said sales were up in China.
SRI's tire business' operating income was up 14.6 percent through nine months to $428.5 million on 8.6-percent better sales of $4.86 billion.
Tire unit sales in overseas replacement markets exceeded the 2013 level due to yen depreciation and improved sales in each country's market, despite intensifying price competition, SRI said.