Yokohama Rubber reports record sales, earnings for 2021

Tokyo – The Yokohama Rubber Co. (YRC) has reported record sales and earnings for the year 2021, helped by higher selling prices and weakening of the yen.

The Japanese group reported sales of Yen671 billion (€5.1 billion) for the full year, up 21.7% over the 2020, said a Yokohama Rubber announcement 17 Feb. 

Operating profit increased 132.4% to 83.6 billion yen while and profit attributable to owners of parent increased 148.9%, to 65.5 billion yen. 

Yokohama linked the sales growth to price increases for tires in North America and other overseas markets as well as the weakening of the yen against other principal currencies. 

The factors, it said, “more than compensated” for the adverse effects of the rise in raw material costs and logistics expenses, as well as the disruptions caused in global supply chains, and Covid-19 challenges.

In the tires segment, the group surpassed 2019 levels, posting sales of Yen470 billion, up 17.7% compared to 2020 and 4% compared to 2019. 
Business profit rose to Yen42 billion, compared to Yen24 billion reported in 2020 and Yen30 billion posted in 2019.

The group’s said its sales of OE tires increased as the adverse effects of the Covid-19 pandemic “somewhat” abated, and despite the continuing shortage of semiconductor devices in the automotive market. 

In the replacement tires segment, Yokohama said it achieved sales gains in North America, in Europe, and in Asian markets outside Japan, led by India.

Yokohama’s ATG (Alliance Tire Group) segment, also surpassed pre-Covid levels with sales of Yen107 billion, up 65% year-on-year and 50% higher than 2019 levels.

The segment also reported a 67% increase in business profit at Yen14.7 billion.
Both sales and business profit, Yokohama said, were “the highest level ever.” 

The segment comprises business in tires for agricultural machinery, industrial machinery, and other off-highway applications. Here, Yokohama said sales increased over the previous year in all of ATG’s principal product categories.

Revenue and business profit also increased over the previous year in Yokohama’s rubber goods multiple business (MB) segment. 

The business unit’s sales grew 6% year-over-year to Yen84 billion, but remained well below the Yen120 billion posted in 2019, due partly to the divestment of the Hamatite sealants and adhesives business.

Business profit was up 30% at Yen3.7 billion, but considerably lower the 2019 level of Yen8.3 billion.

Business in high-pressure hoses expanded, led by strong sales of hydraulic hoses in the resurgent construction equipment sector. 

Sales were flat in industrial materials, as delays in large projects undermined replacement business in marine products and offset Japanese sales growth in conveyor belts. 

In aircraft fixtures and components, sales declined on account of weak demand in the commercial sector.

For 2022, Yokohama projects an 11.8% increase in sales to Yen750.0 billion to ‘reach another all-time high.’ 

However, the group expects the continuing rise in energy and raw material costs to ‘take its toll on earnings’.

Business profit for the year is expected to decline 3.5% from the previous year, to Yen60.0 billion and operating profit to fall 30.1% to Yen58.5 billion, Yokohama said.