KOBE, Japan (Aug. 14, 2008) — Sumitomo Rubber Industries Ltd. posted double-digit drops in operating and net income in the first half despite a 12.1-percent increase in sales.
For the six months ended June 30, Sumitomo reported a 17.7-percent drop in operating income to $136.2 million and a 74-percent plunge in net earnings to $20.3 million on sales of $2.72 billion.
Sumitomo, which controls the Dunlop tire brand in Japan and throughout most of Asia, did not comment on the results. The profit/loss statement, however, showed 15.5- and 41-percent jumps in the cost of sales and non-operating expenses, respectively.
The company's tire division saw operating income slide 40.7 percent to $72.5 million as sales grew 8.6 percent to $2.2 billion.
The firm's sales outside of Japan increased 21.6 percent during the period to $1.34 billion, including a 35-percent jump in North America to $442 million.