Sumitomo to Raise Domestic Tyre Prices

Sumitomo Rubber has announced that it will raise domestic market tyre prices by between 4 and 4.5 per cent in September. The company’s move is said to be in response to the higher cost of synthetic rubber and other input materials.

Analysts have suggested that this is a positive step, which could result in a 2 billion yen boost in full year operation profit. As a result the company’s share went up 1.4 per cent to 1,130 yen. “We maintain our full-year earnings forecasts, as our figures are already above the company’s, and recent rises in materials costs could be negative,” the Deutsche Bank Analysts added.