Sumitomo Rubber Industries (5110) Q3 2024 earnings summary

Executive summary

• Achieved record-high sales revenue of ¥874.9B and business profit of ¥61.5B for Jan–Sep 2024, with a business profit margin of 7.0%.

• Operating profit was ¥11.5B and net profit ¥4.0B, impacted by impairment losses from structural reforms and US subsidiary closure.

• Comprehensive income attributable to owners of parent decreased to ¥16.8B from ¥77.0B a year earlier.

• Major structural reforms included terminating US tire production and selling a sports facility subsidiary.

Financial highlights

• Sales revenue rose 2.8% year-over-year to ¥874.9B for Jan–Sep 2024.

• Business profit increased 46.6% year-over-year to ¥61.5B; operating profit fell 72.3% to ¥11.5B due to one-time impairment losses.

• Net profit dropped 85.1% year-over-year to ¥4.0B.

• Gross profit increased to ¥260.1B from ¥221.0B year-over-year, with a business profit margin of 7.0%.

• Basic profit per share declined sharply to ¥15.40 from ¥103.43 year-over-year.

Outlook and guidance

• Full-year 2024 sales revenue forecast at ¥1,200.0B, up 1.9% year-over-year.

• Business profit projected at ¥80.0B (up 3%), but operating profit and net profit expected to decline sharply due to restructuring costs.

• Profit attributable to owners of parent is forecast at ¥1.0B, a 97.6% decrease year-over-year.

• Annual dividend forecast maintained at ¥58 per share despite lower profit outlook.