Yokohama results flat as Japanese automotive market slows down

Tokyo — Yokohama Rubber Co. Ltd. has achieved its best first quarter results in terms of operating income in the first three months of 2015, according to a company release on 12 May.

Operating income increased 1 percent, to 11.8 billion yen (€87.3 million), on a 0.9-percent decline in net sales, to 138.7 billion yen. Net income declined 10.1 percent, to 5.8 billion yen.

At Yokohama’s tire segment, sales declines in Japan were mostly offset by gains overseas. The company, meanwhile, reported higher sales in its multiple business segment, led by growth in high-pressure hoses and in industrial materials.

Operating income benefited in each business sector from a downward trend in raw material prices and from the weakening of the yen.

In the tire segment, operating income increased 0.5 percent to 9.3 billion yen, on a 1.1-percent decline in sales, to 108.2 billion yen.

The company’s sales of original equipment tires declined in Japan amid declining unit production of vehicles. In the Japanese replacement market for tires, sales declined in yen value and in unit volume.

Overseas , Yokohama’s tire business expanded overall in yen value and in unit volume as strong sales in China and in Russia “more than offset” weakness in North America and in Europe.

Operating income declined 0.4 percent in Yokohama’s multiple business operations, to 2.5 billion yen, on a 0.5-percent increase in sales, to 29.1 billion yen. Business in those operations consists principally of high-pressure hoses; sealants, adhesives, and coatings; conveyor belts; antiseismic products; marine hoses and pneumatic marine fenders; and aircraft fixtures and components.

In high-pressure hoses, sales increased in the automotive sector in North America, buoyed by economic recovery, but declined overall in the construction and mining equipment sector amid slumping prices for crude oil and for other natural resources.

Business expanded in industrial materials, as Yokohama posted strong sales gains in conveyor belts and in marine hoses and also registered sales growth in anti-seismic products and other products for civil engineering applications.