Skip to main content
Sister Publication Links
  • European Rubber Journal
  • Plastics News
  • Tire Business
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • Best Places to Work
    • Rubber Division IEC
    • War in Ukraine
    • Automotive
    • Tire
    • Non-Tire
    • Suppliers
    • ITEC
    • Silicone
    • Online Exclusive
    • Latex
    • Technical Notebooks
    • Executive Action
    • Government/Legal
    • Opinion
    • Blogs
    • Sustainability
    • Products
    • Wacky World of Rubber
  • Airless Tires
  • Custom
    • Sponsored Content
    • White Papers
  • Resources
    • Directory
    • Classifieds & Mold Mart
  • Data
  • Events
    • RN Events
    • RN Livestreams/Webinars
    • Industry Events
    • Past Events
    • Rubber News M&A Live
    • Ask the Expert
    • Healthcare Elastomers Conference
    • Rubber In Automotive Conference
    • Women Breaking the Mold Networking Forum
  • Advertise
  • DIGITAL EDITION
MENU
Breadcrumb
  1. Home
  2. News
February 16, 2018 01:00 AM

Sumitomo Rubber Industries' sales up, operating income down in fiscal 2017

Tire Business Report
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    KOBE, Japan—Sumitomo Rubber Industries Ltd. reported an 8 percent drop in operating income for fiscal 2017 despite 16 percent higher sales, as gains in pricing and volume/mix weren't enough to offset higher raw materials-related costs.

    Operating income slid to $602.2 million on revenue of $7.84 billion, dropping the earnings ratio two full points to 7.7 percent. Net income rose 13.6 percent to $419.5 million.

    SRI noted that the prices of both natural rubber and butadiene—a key ingredient in synthetic rubber—surged throughout the first half of the year before plateauing and falling back in the second half.

    SRI's tire business's performance mirrored the parent's, with operating earnings falling 14.1 percent to $520.9 million and revenue rising 16.7 percent to $6.76 billion. As a result, the operating ratio fell more than two points to 7.7 percent.

    Commenting on the fiscal year, SRI said it "endeavored to achieve greater sales of high-value-added products, including fuel-efficient tires, and enhance our sales force in Europe and the U.S., while proactively entering new markets and business fields."

    The company experienced exponentially high sales growth in North America and Europe, reflecting the enhanced business generated by the firm's new business units established in after the dissolution of its global alliance with Goodyear in late 2015.

    Revenue in North America grew 15.7 percent over 2016 to $1.37 billion, while SRI's European activities nearly double sales there to almost $950 million.

    Globally, tire unit sales grew 9.7 percent, SRI said, to 123.5 million. Production capacity, expressed in metric tons, increased 2.8 percent last year and should grow by the same amount again in 2018. Capacity in the U.S. was up 12.5 percent last year and is projected to grow 9.3 percent this year.

    SRI is projecting sales growth in sales and operating profits of 4 and 8 percent, respectively, on a corporatewide basis, and 4 and 11 percent in the tire business segment.

    Letter
    to the
    Editor

    Rubber News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].

    Most Popular
    1
    Sustainability, circularity require full tire industry buy-in
    2
    VMI outlines tire technology upgrades for efficient, sustainable manufacturing
    3
    Toyo development could yield CO2-derived butadiene rubber
    4
    Michelin to invest $100 million in Kansas ag plant
    5
    Sumitomo Chemical ending SSBR, EPDM production
    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Rubber News delivered straight to your inbox, free of charge.

    Subscribe Today

    Subscribe to Rubber News to get the best coverage and leading insights in the industry.

    SUBSCRIBE
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter

    MISSION

    To serve companies in the global rubber product industry by delivering news, industry insights, opinions and technical information.

    Contact Us

    2291 Riverfront Pkwy, Suite 1000
    Cuyahoga Falls,
    OH 44221

    Customer Service:
    877-320-1726

    Resources
    • About Us
    • Digital Edition
    • Staff
    • Advertise
    • Order Reprints
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Partner Sites
    • Tire Business
    • European Rubber Journal
    • Plastics News
    • Urethanes Technology
    • Automotive News
    • Crain Brands
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Best Places to Work
      • Rubber Division IEC
      • War in Ukraine
      • Automotive
      • Tire
      • Non-Tire
      • Suppliers
      • ITEC
      • Silicone
      • Online Exclusive
      • Latex
      • Technical Notebooks
      • Executive Action
      • Government/Legal
      • Opinion
      • Blogs
        • Products
        • Wacky World of Rubber
      • Sustainability
    • Airless Tires
    • Custom
      • Sponsored Content
      • White Papers
    • Resources
      • Directory
      • Classifieds & Mold Mart
    • Data
    • Events
      • RN Events
        • Healthcare Elastomers Conference
        • Rubber In Automotive Conference
        • Women Breaking the Mold Networking Forum
      • RN Livestreams/Webinars
      • Industry Events
      • Past Events
      • Rubber News M&A Live
      • Ask the Expert
    • Advertise
    • DIGITAL EDITION