TOKYO—Sumitomo Rubber Industries (SRI) has revised up its full-year forecast following strong performance in the first half.
The Japan-based group now expects full-year revenue to come in at $8.1 billion (Yen 1,170 billion), up nearly 1 percent from an earlier forecast of $8 billion, SRI said in an Aug. 7 statement.
Business profit forecast has been revised up to $346.7 million from the previous $305.1 million, while operating profit is expected to reach $284.3 million, nearly 19 percent above the previous forecast.
SRI attributed the improved outlook to the positive effects of price increases and foreign currency translations, and despite lower automotive production due microchip shortages.
In addition, the group said its profits exceeded the previous forecast partly due to an easing of raw material prices and improvement of the sales mix by focusing on advanced tires.
Over the first six months of 2023, the Japanese group saw "business profit" increase to $118 million, up 20.4 percent compared to the year before.
Operating profit for the period grew 33.7 percent to $116.5 million, up from $95.2 million reported in 2022, according to average 2022 exchange rates. Sales, meanwhile, increased by nearly 10 percent year-on-year during the first half, to $3.9 billion.