Sumitomo Riko's full fiscal year revenue reduction

- May 28, 2019-

Sumitomo Riko (formerly Tokai Rubber) recently released statistics showing that the company achieved sales of 469.707 billion yen in the full fiscal year ending March 2019, up 1.5% year-on-year (the same below); main business profit was 9.379 billion Yuan, a decrease of 27.1%; operating profit of 1.153 billion yen, a decrease of 90.5%; the current profit attributable to the parent company was 5.022 billion yen (the profit for the previous fiscal year was 3.528 billion yen).

The company said that sales in the automotive and infrastructure sectors in China and Asia have contributed to sales growth.

In terms of profit from the main business, the profitability of the Japanese and European markets has improved. However, the low productivity caused by the shortage of labor in the United States continued in the current period. Due to the shrinking of the Argentine auto market, the performance of the Brazilian subsidiary declined, which ultimately led to a decrease in revenue.

In terms of operating profit, the loss due to the acquisition of the anti-seismic rubber business subsidiary in 2013 and the fixed assets of Mexico and Brazil subsidiaries resulted in a significant decrease in revenue.

According to product statistics, sales of automotive products increased by 1.2% to 398.16 billion yen, and the profit from main operations was 7.771 billion yen, a decrease of 20.4%. Sales of general industrial products reached 71.545 billion yen, an increase of 3.0%; the main business profit was 1.608 billion yen, a decrease of 48.0%.

For the fiscal year ending March 2020, Sumitomo Riko's sales are expected to reach 470 billion yen, a slight increase of 0.1%; main business profit of 10 billion yen, an increase of 6.6%; operating profit of 8 billion yen, an increase of 593.7% The current profit attributable to the parent company is 2 billion yen.