KOBE, Japan (March 12) — Sumitomo Rubber Industries Ltd., buoyed by sales outside of Japan, reported 4.1-percent higher sales and 7.6-percent better net earnings in fiscal 2006 over 2005.
Operating income, on the other hand, fell 26.3 percent to $316.3 million, dropping the operating earnings ratio three full percentage points to 6.9 percent. The company did not offer any commentary on its results.
For the year Sumitomo reported sales of $4.59 billion and net income of $237.2 million, good for a 5.2-percent net earnings ratio.
The company´s sales growth took place almost entirely outside of Japan. Sales in North America, for example, rose 11.2 percent to $554 million last year. Sumitomo is represented in North American by Treadways Corp./Sumitomo Tire and Falken Tire Corp.
The firm also experienced double-digit sales growth in Asia and other areas, whereas business in Europe fell 27.3 percent.
Capital expenditures rose 11.6 percent to $413.5 million.