KOBE, Japan—Sumitomo Rubber Industries (SRI) has reported significant growth in first-half profit as the economic environment "continued to recover gradually."
Business profit increased 148 percent year-on-year to $153.9 million on 4.6-percent higher sales of $3.7 billion, SRI reported Aug. 7.
Though some regions remain at "a standstill," SRI said it expects the Japanese economy to continue to recover steadily with the improvement in the employment and income environment.
Furthermore, foreign-exchange impact on earnings "considerably improved" during the six-month period, offsetting lower tire volumes caused by automotive production cuts.
Breaking down segments, SRI said its tires business posted a 248-percent increase in first-half business profit to $218 million, on 5.3-percent higher sales of $3.1 billion.
In the Japanese original equipment market, sales fell "significantly below" the level of the same period last year, as some of the car makers reduced production in Japan. In the Japanese replacement market, first half volumes fell year-on-year due to a high comparison base last year, when there was a "rush demand" before price hikes.
In the overseas OE market, sales "substantially declined" mainly to Japanese car makers in the Asia region.
The overseas replacement market was buoyed by higher sales in Europe as demand grew for all-season tires and other products such as the Falken brand.
The Americas reported lower sales due to stronger comparison base last year.
