Sales and net profits rise in Q1 for Yokohama

ERJ staff report (DS)

Tokyo - The Yokohama Rubber Co., Ltd., said net income in the three months to 30 June 2011 increased 74.3 percent over the same period of the previous fiscal year, to 2.8 billion yen (euro 25.7 million). Yokohama is moving its accounting period to the calendar year (Jan-Dec) instead of the financial year (April-March). Thus, the current financial period will cover just nine months, from April 2011 until December 2011.

Yokohama reported a 10.2 percent increase in net sales, to 129.4 billion yen (Euro 1187 million). That increase resulted mainly from strong sales of tyres in Japan and overseas. Operating income declined 29.9 percent, to 4.1 billion yen. Unit sales growth and progress in reducing costs were sufficient to offset the adverse effect on earnings of the appreciation of the yen and increased selling expenses, but price increases for Yokohama products were insufficient to fully offset the effect of rising prices for raw materials.

Sales in Yokohama's tyre operations increased 12.1 percent, to 103.8 billion yen, while operating income declined 30.1 percent, to 3.7 billion yen. Japanese demand for original equipment tyres declined in the wake of the Great Tohoku Earthquake, but Yokohama posted strong sales gains in the Japanese replacement market and also registered growth in North America, Europe, and China. The decline in operating income reflected the rising prices for raw materials.

Yokohama posted sales growth of 4.4 percent, to 19.8 billion yen, in industrial products, which consist mainly of high-pressure hoses, sealants and adhesives, conveyor belts, anti-seismic products, marine hoses, and marine fenders. The company posted a 114 million yen operating loss in this segment, compared with operating income of 349 million yen in the same period of the previous fiscal year. Underlying the sales growth in industrial products was a recovery in demand in high-pressure hoses for construction equipment and in conveyor belts and an increase in overseas orders for marine hoses. The deterioration of operating profitability reflected slumping demand for automotive hoses and sealants in the wake of the earthquake

Yokohama projects that net sales in the six months to September 30, 2011, will increase 8.3 percent over the same period of the previous fiscal year, to 258.0 billion yen; that operating income will decline 27.5 percent, to 6.0 billion yen; and that net income will increase 7.3 percent, to 1.3 billion yen.

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Press release from Yokohama