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Sumitomo Rubber Business Report FY2008
Business Highlights
Financial overview
Contracts
-The Company announced that tires produced at Sumitomo Rubber (Thailand) Co., Ltd., its subsidiary in Rayong, Thailand, won the first business as factory-fitted tires. The Dunlop SP Sport 2030 tires were supplied to Toyota for the Vios (Belta in Japan) produced in Thailand. (From an article in the Nikkan Jidosha Shimbun on Jun.7 2008)
| (in million JPY) | FY2008 | FY2007 | Increases(%) | Factors |
| Overall | ||||
| Sales | 604,974 | 567,306 | 6.6 | - |
| Operating income | 25,658 | 45,126 | (43.1) | |
| Ordinary income | 14,792 | 43,201 | (65.8) | |
| Net income | 1,020 | 19,498 | (94.8) | |
| Tire business | ||||
| Sales | 501,062 | 478,482 | 4.7 | - Sales increased from a year ago thanks to strong demand in the overseas market. |
| Operating income | 15,849 | 35,892 | (55.8) | Operating income decreased significantly from last year's result due mainly to the following factors: -soaring materials prices -a decline in profit margins in the latter half because of the rising value of the yen -falling global market demand since October 2008 |
Contracts
-The Company announced that tires produced at Sumitomo Rubber (Thailand) Co., Ltd., its subsidiary in Rayong, Thailand, won the first business as factory-fitted tires. The Dunlop SP Sport 2030 tires were supplied to Toyota for the Vios (Belta in Japan) produced in Thailand. (From an article in the Nikkan Jidosha Shimbun on Jun.7 2008)
R&D
R&D Structure
-The Company's R&D activities are being conducted at SRI Research & Development Ltd. established in 2003.
-The Company is carrying out joint research with the Goodyear Tire and Rubber Company based on its ties with the U.S. tire supplier. Engineers of both companies work in teams for respective projects to exchange their technologies.
R&D Expenditure
R&D ActivitiesProduct Development
-The Company announced that it has developed new technology to simulate and visualize noise generated by running tires. The new technology uses both the tire structure analysis and the aero dynamic analysis to reproduce the tire pattern noise. The new technology analyzes impact noise, which is generated when block patterns hit the road surface, and air-pumping noise, which is propagated when air in tire grooves is released as they are pressed onto the road, based on both the tire behavior simulation and aero dynamic simulation. Thus, air pressure fluctuations represented by noise can be shown visually. (From an article in the Nikkan Jidosha Shimbun on Sep.11繝ｻ 2008)
-The Company's R&D activities are being conducted at SRI Research & Development Ltd. established in 2003.
-The Company is carrying out joint research with the Goodyear Tire and Rubber Company based on its ties with the U.S. tire supplier. Engineers of both companies work in teams for respective projects to exchange their technologies.
R&D Expenditure
| (in million JPY) | FY2008 | FY2007 | FY2006 |
| Tire Division | 16,013 | 15,105 | 14,215 |
| Total | 19,351 | 18,223 | 17,291 |
| Ratio of R&D expenses at Tire Division | 82.8% | 82.9% | 82.2% |
R&D ActivitiesProduct Development
-The Company announced that it has developed new technology to simulate and visualize noise generated by running tires. The new technology uses both the tire structure analysis and the aero dynamic analysis to reproduce the tire pattern noise. The new technology analyzes impact noise, which is generated when block patterns hit the road surface, and air-pumping noise, which is propagated when air in tire grooves is released as they are pressed onto the road, based on both the tire behavior simulation and aero dynamic simulation. Thus, air pressure fluctuations represented by noise can be shown visually. (From an article in the Nikkan Jidosha Shimbun on Sep.11繝ｻ 2008)
Investment Activities
Capital Expenditure
-The Company invested mainly in its tire business by increasing production capacities as well as reducing the number of employees needed. Targeted facilities include car tire production facilities in the Company's Nagoya Plant, Shirakawa Plant, Izumiohtsu Plant and Miyazaki Plant.
Major capital investment projects (Automotive Segment)
| (in million JPY) | FY2008 | FY2007 | FY2006 |
| Tire Business | 46,987 | 49,796 | 42,253 |
| Total | 49,601 | 53,205 | 45,308 |
| Ratio of capital investment at Tire Division | 94.7% | 93.6% | 93.3% |
-The Company invested mainly in its tire business by increasing production capacities as well as reducing the number of employees needed. Targeted facilities include car tire production facilities in the Company's Nagoya Plant, Shirakawa Plant, Izumiohtsu Plant and Miyazaki Plant.
Major capital investment projects (Automotive Segment)
| Company name (Location) |
Project | Estimated amount (million yen) |
Project Period | Increases in production capacity (%) | |
| From | To | ||||
| Sumitomo Rubber Industries Nagoya Plant (Aichi Pref., Japan) |
Production equipment for automotive tires | 8,471 | Jan. 2008 | Dec. 2009 | 3 |
| Sumitomo Rubber Industries Shirakawa Plant (Fukushima Pref., Japan) |
Production equipment for automotive tires | 6,597 | Jan. 2008 | Dec. 2009 | 1 |
| Sumitomo Rubber Industries Izumiotsu Plant (Osaka Pref., Japan) |
Production equipment for automotive tires | 3,761 | Jan. 2008 | Dec. 2009 | 10 |
| Sumitomo Rubber Industries Miyazaki Plant (Miyazaki Pref., Japan) |
Production equipment for automotive tires | 6,025 | Jan. 2008 | Dec. 2009 | 2 |
| Sumirubber (Changshu) Co., Ltd. (Jiangsu Prov., China) |
Production equipment for automotive tires | 13,595 | Jan. 2008 | Dec. 2009 | 37 |
| Sumitomo Rubber (Thailand) Co., Ltd. (Rayong, Thailand) |
Production equipment for automotive tires | 25,327 | Jan. 2008 | Dec. 2009 | 283 |
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