Yokohama´s sales up, earnings down through three quarters

Tokyo -- Yokohama Rubber Co. Ltd. suffered double-digit declines in operating and net income for the nine months ended Dec. 31, but sales were up and management is raising its full-year forecast over that issued in November.

Operating income fell 18.3 percent, to $147 million, largely on the effects of higher raw materials costs. Net income slipped 29.8 percent, to $117.8 million, on the additional effect of a tax benefit the previous year that enhanced fiscal 2006 results.

Sales on other hand rose 10.2 percent to $3160 million on improved sales of both tyres and non-tyre products. As a result, the operating income- and net income-to-sales ratios slipped noticeably to 4.6 and 3.7 percent, respectively.

Yokohama Tire Group´s sales grew 11.2 percent in the period to $2380 million, with business particularly strong in Europe and throughout Asia/Oceania. Operating income fell 29.9 percent to $110.9 million, or 4.7 percent of sales.

For the fiscal year ending March 31, Yokohama management predicts sales will be up 9.5 percent over fiscal 2006 to $4300 million and operating income will be about $185 million. Both are slight improvements over the forecast issued in November and are based on a weaker yen than previously assumed and a moderation in price increases for natural rubber and other raw materials.

From Rubber & Plastics News (A Crain publication)

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