SUMITOMO Rubber Industries Ltd. forecasts strong sales and earnings this year for its tyres, sporting and industrial business units.
Based on the company’s fiscal 2012 financial summary report, this year, the company projects a 7% to US$7.62 billion sales growth, along with 5% operating income growth and 16-percent net earnings growth, to $73.1 million and $41 million, respectively.
For the tyre business unit, Sumitomo is projecting a 7% sales and 5% operating income growth to U$6.63 billion and US$661 million, respectively, based in part on growth in overseas OE and replacement tyre demand. However, domestic OE and replacement tyre volumes are comparably weak.
Expanding production capacity supports the growth of the latter division. In the previous year, the company’s global tyre production capacity grew 7% to 49.9 million metric tonnes annually. This year, capacity is expected to increase by 4% to 51.6 million tonnes, with the opening of company’s plant in Brazil and continued expansion in Thailand contributing to the increase.
The industrial division is expected to post the largest sales by 12% and earnings by 36%.
Sumitomo, which sells tyres in North America under Sumitomo and Falken brands, recorded a sales decline of 1.2% to US$1.02 billion in the continent for the fiscal 2012. The revenue includes sales for its sporting goods and industrial divisions.