Net profit increased by 41% in the first half of 2014

According to Kobe, Japan, Sumitomo Rubber Industries Co., Ltd. (hereinafter referred to as 'SRI') recently announced its financial report for the first half of 2014. As of June 30, the company’s operating income and net profit increased by 9.5%. This was mainly due to The moderate growth in the Chinese market and its gradual recovery in the North American and European markets.

In the first half of 2014, the company’s operating income increased by 18% to reach US$342.4 million (approximately 2.1 billion baht); net profit increased by 41.1% to US$213.1 million; sales rose to US$3.69 billion.

The company did not elaborate on the reasons for the improvement of its earnings. It merely stated that the price of natural rubber continued to decline, and various measures were taken in the pursuit of business growth and improvement of profitability.

SRI's tire business report showed that operating income for the first half of the year was 308.1 million U.S. dollars, an increase of 19.9%, sales revenue increased by 10.5%, and operating efficiency was as high as 9.6%.

In addition, the company’s original market for tires and replacement tires continues to increase, including the growth of fuel-efficient tires. Sumitomo did not provide data or outlook on regional breakdown in other parts of 2014.