KOBE, Japan (Feb. 24, 2009)—Sumitomo Rubber Industries Ltd. suffered a 94.5-percent drop in net income last year despite a 6.6-percent rise in sales.
Sumitomo's net income fell to $10.4 million as sales rose to $5.85 billion. Operating income fell 43.2 percent to $248.5 million.
Sumitomo did not offer any commentary on the results, but the firm's balance sheet shows the cost of sales rose nearly 12 percent during the year. Selling, general and administrative expenses increased by 8.5 percent. Both categories were up more than the 6.6-percent sales rise.
Sumitomo's tire division reported a 4.7-percent rise in sales to $4.84 billion, but operating income fell 55.7 percent to $153.7 million, or 3.2 percent of sales.
Sales in North America grew 12.6 percent to $829.7 million. Sumitomo sells tires in North America under both the Sumitomo and Falken brands.