HYOGO, Japan—Sumitomo Rubber Industries Ltd. revised up its financial guidance for 2023 on stronger automotive production and an easing of raw material costs.
The Japan-based group now expects earnings to come in at $440 million (Yen 63 billion) for the full-year, up 26 percent compared to an earlier estimate provided in January.
Full-year revenue is now expected to reach $8.2 billion, up by 1 percent compared to a January estimate of $8.1 billion, SRI reported Nov. 10.
SRI linked the upward revision mainly to strengthening car production following the easing of semiconductor shortages and the effect of foreign currency translations. In addition, a downward trend in the prices of raw materials and the improvement of sales mix, by focusing on "advanced tires and other factors," are expected to contribute to improved earnings.
The upgraded forecast follows a strong third quarter for SRI, which saw earnings increase to $174.7 million—from a loss of $13.7 million a year ago (according to average 2022 exchange rates)—on 7-percent higher sales of 2 billion.
For the first nine months of 2023, SRI saw earnings surge to $293 million, up significantly from $91.3 million reported for the same period the year before.
Sales for the first nine months of 2023 were up 9 percent year-on-year at $5.9 billion, SRI reported.
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].