Sumitomo’s 2004 Results Beat Forecast
Sumitomo Rubber has released strong 2004 results, at the same time as announcing both the appointment of Tetsuji Mino as president.
Net sales were recorded at 3.41 billion euros. Operating income rested at 329.9 million euros, of which 238.4 million euros (equating to 72.3 per cent) came from tyres. This showed a decrease compared to 2003 where 82.6 per cent of operating income came from tyres. Net income was 138.9 million euros from 94.9 million in 2003 and net sales were 2.59 billion euros, or 76 per cent of overall sales.
According to Deutsche Bank the company’s figures beat both its forecast and the market consensus. “We normally set our forecasts a notch higher than company guidance, as it tends to be conservative. On this basis, there is almost no change to our existing FY12/05 estimates,” wrote the analysts.
“We maintain our Buy rating while acknowledging that the shares could potentially see a short-term correction in the wake of the results announcement,” concluded the bank.