Yokohama expects to record a loss in current fiscal year

ERJ staff report (DS)

Tokyo -- Yokohama Rubber Co. has said it expects to make a consolidated net loss of Yen 7000 million (Euro 60 million) for the twelve months to 31 March 2009. In the same period a year ago, the company made Yen 21 000 million profit. The company has released a new forecast for the current year which further downgrades its financial expectations. Yokohama said it now expects operating income for the period  to be Yen 14 000 million, well under half the Yen 33 000 million recorded a year ago.

Yokohama said it expects consolidated sales to be Yen 523 000 million, down from Yen 551 000 million recorded last year.

The revised projection for net sales is 6.1% lower than the projection Yokohama announced on November 12, 2008; the projection for operating income 46.2% lower; and the projection for net income 16.5 billion yen lower. Management is reconsidering the year-end dividend of 7 yen that it had planned to recommend.

Yokohama said demand has slumped while the yen has strengthened against other currencies. Management had assumed average exchange rates of 103 yen per U.S. dollar and 146 yen per euro in preparing the earlier projections. The assumptions for average exchange rates that underlie the revised projections are 100 yen to the U.S. dollar and 143 yen to the euro.

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Press release from Yokohama