Japanese tyre maker launches cost-cutting initiative as US tariffs bite

Sumitomo Rubber Industries maintained its full-year profit forecast despite a sharp decline in first-half earnings, as the Japanese tyre maker launched a comprehensive cost-reduction programme to counter rising raw material costs and US trade tariffs.

The company reported business profit of 28.3 billion yen for the six months ended June 30, down 33 percent from the previous year, whilst sales revenue fell  three percent to 572.2 billion yen. Profit attributable to shareholders plunged 63 percent to 14.4 billion yen.

Despite the weak first-half performance, Sumitomo Rubber held its full-year business profit target at 95 billion yen, representing an eight percent increase from the previous year.

"At the initial planning stage for H1, we anticipated significant negative impacts from rising raw material costs, particularly natural rubber, as well as foreign exchange fluctuations," President and CEO Satoru Yamamoto told analysts. "Overall, performance progressed largely in line with our plan."

The company faces headwinds from US tariffs imposed under the Trump administration, with an estimated impact of 14.5 billion yen for the current fiscal year, down from an initial estimate of 18 billion yen following tariff postponements and rate reductions in Japan and Indonesia.

Project ARK targets 30 billion yen savings

To bolster profitability, Sumitomo Rubber launched "Project ARK," a company-wide cost-reduction initiative targeting 30 billion yen in cumulative savings by the end of 2027 from its 1.1 trillion yen annual cost base.

"By advancing Project ARK, which carries forward the direction of the Be The Change initiative, we intend to help build a robust management foundation that is resilient to such external changes," Yamamoto said.

The programme focuses on tyre production costs, shared administrative and R&D expenses, and non-tyre business segments. General Manager Shinji Araki, who leads the project, said the company expects to achieve "several billion yen" in savings this year, ramping up to approximately 10 billion yen in fiscal 2026.

Dunlop brand expansion progresses

The company began selling tyres under the acquired Dunlop brand in North America and Australia in May, following the completion of its trademark acquisition from Goodyear Tire & Rubber. Sumitomo Rubber plans to launch proprietary Dunlop products for the North American market in January 2026, with European sales to follow.

"By introducing differentiated products manufactured by the Company under the DUNLOP brand in Europe, North America, and Oceania, we aim to increase the proportion of premium products," Yamamoto said.

The company's proprietary Active Tread technology, featured in its Synchro Weather tyre launched in Japan last October, won multiple industry awards and is being developed for next-generation all-season tyres targeting European and North American markets for a 2027 launch.

Tariff impact manageable

Sumitomo Rubber began implementing price increases in the US  market in May to offset tariff impacts, with Managing Executive Officer Hidekazu Nishiguchi saying progress has been "generally in line with our plan."

The company estimates it can recover approximately 10 billion yen of the 13.5 billion yen tariff impact on its tyre business through price increases, with the remainder offset through cost reductions and expense controls.

"Since we primarily ship from Thailand, the tariff is applied to the export price from Thailand. As a result, we estimate the effective tariff burden to be around 12% to 13%," Nishiguchi explained.

For the full year, Sumitomo Rubber forecasts sales revenue of 1.215 trillion yen, unchanged year-on-year, whilst maintaining its interim dividend at 35 yen per share with a projected year-end dividend of 35 yen for a total annual payout of 70 yen.

The company's tyre sales volume is expected to decline four percent to 99.03 million units for the full year, though it continues to focus on premiumising its product mix, with premium tyres forecast to account for 46 percent of passenger car tyre sales, up from 44 percent previously.

Comments (0)

ADD COMMENT

Link Copied!

Hankook Tire is supplying its Ventus F200 racing tyre to the HWA EVO.R sedan, competing in the 2026 Nürburgring 24 Hours, taking place from 14 to 17 May in Germany. Serving as the Official Technology Partner of HWA AG, Hankook is providing technical assistance throughout the race weekend with the Ventus F200 fitted to the HWA EVO.R in the open SP-X class for high-performance tuned vehicles. The racing slick is engineered for dry conditions and aims to deliver stable performance under extreme endurance racing demands.

Recognised globally in motorsport, the Ventus F200 incorporates advanced compound technologies that enhance driving performance and achieve roughly a 10 percent weight reduction over its predecessor. The tyre offers strong grip, high-speed stability and precise handling under demanding race conditions. HWA AG, founded by former Mercedes-AMG Co‑Founder Hans Werner Aufrecht, is a noted global motorsport engineering company specialising in high‑performance vehicle development.

This collaboration expands an existing strategic partnership, following Hankook’s original equipment tyre supply for the limited‑production HWA EVO last year. Hankook currently provides several ultra‑high‑performance OE products for that model, including the Ventus evo Z, Ventus evo and Winter i*cept evo3. Moving forward, Hankook plans to strengthen its premium brand competitiveness by deepening cooperation with HWA AG in both OE and motorsport sectors.

Comments (0)

ADD COMMENT

Link Copied!

HS HYOSUNG ADVANCED MATERIALS has secured a place on the Dow Jones Best-in-Class (DJ BIC) Korea Index for three years running, marking consistent recognition from the S&P Global benchmark for corporate sustainability. This index, released by a major global financial information provider, is known as a highly trusted gauge of ESG performance. Membership is limited to the top 30 percent of companies per industry, drawn from the two hundred largest listed firms in South Korea by market value.

In a related achievement, the company also appeared in S&P Global’s Sustainability Yearbook 2026 for the second straight year. The latest assessment reviewed over 9,200 businesses across 59 industries worldwide, and HS HYOSUNG ADVANCED MATERIALS earned a Yearbook Member designation by placing within the top fifteen percent of its global industry.

To drive these results, the firm has built an ESG framework on four pillars: Zero Fatality for safety, Zero Emission for carbon reduction, Zero Waste for circular resource use and Zero Impact for stakeholder accountability. Senior management directly oversees a Sustainability Management Committee and specialised subcommittees, ensuring that ESG strategies are implemented across the entire organisation to boost corporate value.

Jim Jindal Lim, CEO, HS HYOSUNG ADVANCED MATERIALS, said, “Our inclusion in DJ BIC Korea for three consecutive years and our second consecutive listing in the S&P Global Sustainability Yearbook demonstrate that HS HYOSUNG ADVANCED MATERIALS has consistently implemented meaningful changes for sustainable management. We will continue strengthening our response to climate change and enhancing our corporate social responsibility.”

Comments (0)

ADD COMMENT

Link Copied!

Dr Suttipong Angthong, Secretary-General of the Association of Natural Rubber Producing Countries (ANRPC), attended the TRA & TLA Dinner 2026 on 8 May 2026. The high-profile gathering was jointly organised by the Thai Rubber Association (TRA) and the Thai Latex Association (TLA) at the Centara Grand at CentralWorld. The event brought together industry leaders, policymakers and key stakeholders from across the rubber and latex sectors to foster professional relationships and examine the shifting dynamics of the global natural rubber market.

The event served as a critical platform for Dr Angthong to engage in high-level discussions on market sustainability, trade relations and technological advancement. Particular attention was given to the long-term viability of rubber production, improving synergy between producers and exporters and the growing role of latex processing in the modern economy. His presence highlighted the ANRPC’s dedication to supporting member countries through close cooperation with national associations.

Thailand continues to hold a foundational position in the global natural rubber industry. The partnership between the TRA and TLA acts as a key driver of both innovation and regional stability, reinforcing the importance of collaborative efforts to navigate the evolving market landscape.

Dr Angthong said, "Events like the TRA & TLA Dinner are essential for maintaining the pulse of the industry. It is through these partnerships that we ensure the natural rubber sector remains resilient and forward-looking."

Comments (0)

ADD COMMENT

Link Copied!

Continental is preparing to appear at this year’s TOC Europe with a combined offering of advanced tyres and digital management tools. The company’s presence at the event will emphasise its drive to make port logistics both high-performing and resource-conscious.

The exhibition lineup is built around the theme ‘Driven by Excellence’, featuring the ContiConnect digital tyre platform alongside the new DockMaster Radial tyre. The latter is a purpose-built product for harsh port environments, including automated guided vehicles, reach stackers and heavy forklifts. A company representative has explained that every solution is tailored directly to real customer needs in port operations, blending tyre engineering with data services to enable more energy-efficient and digitally managed workflows.

TOC Europe 2026 will run from 19 to 21 May at the Hamburg exhibition grounds. Continental will receive visitors in Hall B6 at Booth B44, where the focus will fall on operational safety, sustainability and efficiency gains.

ContiConnect plays a central role in cutting tyre management costs and streamlining fleet operations. Properly managed tyre pressure can lower fuel use by up to two percent, while continuous monitoring extends tyre life by as much as 20 percent, simultaneously reducing carbon emissions and operating expenses. The system comes in two forms. ContiConnect Lite is a mobile, app-based entry tool requiring no extra infrastructure, whereas ContiConnect Pro delivers real-time data, automated reports and system integration for large fleets.

The DockMaster Radial tyre stands out for its durable, efficient and robust design. A large footprint and maximised tread volume prolong service life, while the radial build lowers heat buildup over long travel distances. Its rolling resistance is lower than that of bias-ply tyres, improving energy efficiency. An integrated sensor tracks both temperature and inflation pressure, while a specialised rubber compound resists cuts, abrasion and cracking. This makes the tyre especially suitable for intense applications with extended operating ranges and punishing ground surfaces.

Beyond products, Continental offers a data-led tyre consulting service to lower total ownership costs and improve resource use. Experts analyse operational data including distance, speed and active cycle time to advise on vehicle deployment, route planning and tyre selection. Detailed usage studies help match the right tyre to each application, reducing premature failures, extending tyre life and delivering clear efficiency improvements for port operators.

Federico Jiménez, Head of Business Development and Product Management for Continental’s Commercial Specialty Tires, said, “We consistently align our solutions with the requirements of our customers in port operations. With our combination of innovative tyre technology and data-driven services, we enable more energy-efficient, digital, and therefore more efficient operations.”

Comments (0)

ADD COMMENT

Link Copied!