KOBE, Japan — Sumitomo Rubber Industries Ltd. (SRI) has revised upward its earnings forecast for fiscal 2023 based on increased profits through the first nine months of the year and an easing of raw materials price rises, an improvement of the sales mix by focusing on advanced tires and other factors.
Sumitomo now expects to report an operating profit of $333 million— up 12.2% over earlier forecasts — on revenue of $8.55 billion, up 0.9% over the earlier forecasts. The improved report would yield an operating ratio of 3.9%.
SRI said sales revenue for the fiscal year is expected to exceed the previously announced forecast due to an easing of the downward trend in automotive production volume due to the shortage of semiconductors, and the effect of foreign currency translation.
For the quarter ended Sept. 30, SRI reported 27.4% higher operating income for the quarter ended Sept. 30 on 7% higher revenue, as freight and energy costs fell compared with prior-year levels.
Operating income rose to $170.2 million on sales revenue of $2 billion, raising the operating ratio to 8.5%. Net income was up 21.8% to $131.5 million.
SRI's tire business generated $152.4 million in operating income during the quarter on 8% higher sales of $1.72 billion, for an operating ratio of 8.8%.