TOKYO—Sumitomo Riko has registered double-digit declines in profitability for the fiscal year ended March 31, due in part to labor shortage in the U.S. and automotive slowdown in South America.
The rubber products manufacturer posted a 27.1 percent year-on-year decline in business profit at $86.6 million, on 1.5 percent higher net sales at $4.3 billion.
Sales within the automotive products segment rose 1.2 percent to $3.7 billion, helped by strong sales in Japan, China and Thailand, the company former known as Tokai Rubber said in a May 10 statement.
Segment profitability was down 20.4 percent at $71.8 million due to "labor shortage and higher raw material costs in the U.S."
The business unit also was impacted by a "contracted" Argentinian automotive market, higher start-up costs for new products in Mexico and lower sales in Europe.
In the general industrial products division, profitability was down 48 percent year-on-year at $14.7 million, on 3 percent higher sales of $658 million.
Sales were impacted by lower revenue from printer and railway parts, although high-pressure hoses saw a rise in demand.