Sumitomo Results Show Higher Sales, Lower Profits

Sumitomo Rubber Industries has released its consolidated interim results for the period between January 1 and June 30, 2008, and these figures show a pattern echoed throughout the tyre industry at present – increased sales but reduced profits. Net sales of 284,491 million yen (£1.38 billion) were 12.1 per cent up on those achieved in the first six months of 2007, during which time sales of 253,858 million yen (£1.24 billion) were recorded.

Operating income during the six months was 14,250 million yen (£69.34 million), a decrease of 17.7 per cent. Similarly, ordinary income, at 11,124 million yen (£54.13 million), was lower this year, this time by 35.4 per cent on the January – June 2007 result. Net income dropped from 8,159 million yen (£39.70 million) in the first half of 2007 to 2,123 million yen (£10.33 million) in 2008, a decrease of 74.0 per cent.

Net sales of tyres during the period amounted to 229,870 million yen (£1.19 billion), an increase of 8.52 per cent. Operating income, however, dropped 40.7 per cent to 7,583 million yen (£36.90 million).