Sumitomo Rubber Industries report a drop in income in the first half of 2015. Operating income was down by 16.6% to USD243.4M. Net earnings were also down by 8.4% to USD 166M. Conversely, the total sales were up by 2.7% at USD3.24M
Sumitomo’s tyre business, in particular, had the same fate. Operating income was down by 12.8% at USD229M, but sales increased by 1% at USD2.76M
SRI said a number of factors were at play. Sales in Japan were affected by market and tax-related issues. International sales grew by 8.3%. SRI’s sales in North America alone jumped 30.3 percent, to USD476M. But further growth in other countries, according to SRI, was hampered by the global economy and the depreciating currencies.
Looking at factors affecting SRI directly, the company noted that natural rubber and crude oil prices remained at low levels and the depreciating yen helped improve exports.
Sumitomo’s earlier forecast for 2015 remains unchanged—modest sales and earnings increases of 7.5 and 4.3%, respectively, leaving the operating ratio essentially unchanged at 10%.