10 Aug 2006
Tokyo -- Yokohama Rubber Co. Ltd has again lowered its earnings forecast for the 2007 fiscal year after suffering double-digit declines in operating and net income in the first quarter of this year.
The Japanese tyremaker's operating income for the quarter fell by 34.2 percent to $15.9 million (€12.4 million) and net income slipped by 16.2 percent to $10.8 million.
The company blamed larger-than-expected increases in raw material prices as well as higher administrative costs for the profit decline.
Yokohama management said it now expects fiscal 2007 operating income to fall by about 27 percent from last year to $138 million, more than 30 percent lower than its earlier projects from two months ago.
Yokohama posted an 11 percent increase in sales on the back of growth in its overseas tyre business.
Sales grew to $918.6 million as both the tyre and multiple business units posted double-digit revenue gains.
The tyre business suffered a 64.6 percent drop in operating income to $8.7 million but its sales rose by 11.8 percent to $672.5 million.
From Rubber & Plastics News (A Crain publication)
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