Yokohama Rubber posts 5% earnings rise on “record” sales

Hiratsuka, Japan – Yokohama Rubber Co. (YRC) has reported a 4.6% year-on-year rise in ‘operating profit’ to Yen28.2 billion (€178 million) on ‘record’ half-year sales of Yen443.2 billion, 13.2% higher than a year ago.

First-half sales growth reflected “stepped-up marketing of high-value-added tires, improvements in the product mix in the company’s tire sales portfolio, and progress in securing price increases for tires,” YRC said 10 Aug.

Also contributing were sales gains across all ‘principal product categories’ in the group’s non-tire MB (Multiple Business) segment as well as a weakening of the yen against other main currencies.

In terms of earnings, YRC’s analysis also showed a 7.8% year-on-year decline in ‘business profit’, to Yen25.6 billion, due mainly to higher materials, energy and other costs at its Tires segment.

YRC went on to report increased sales of OE automotive tires, helped by a recovery in new-vehicle sales, both in Japan and North America – more than offsetting weak sales for Japanese automakers in China.

Replacement tire revenues also increased, with strong demand for winter tires in Japan and growth in sales of high-value-added products, such as for SUVs and pickup trucks, in Europe and in China.

In the off-road tires segment, YRC noted reduced sales at its legacy Yokohama Off-Highway Tires business, which the company handled as the Alliance Tire Group segment prior to 2022.

However, the group said that decline was more than offset by new sales from the May acquisition of Trelleborg Wheel Systems Holding AB – now operating as Y-TWS.

At the group’s non-tire MB segment, sales revenue and ‘business profit’ increased year-on-year, YRC’s first half report continued.

Growth areas, it said, included hose & couplings – supported by a recovery in vehicle production in North America – conveyor belts, marine products and aircraft fixtures and components.

Looking at the group’s full-year outlook, YRC stood by projections issued in May: Sales revenue of Yen1,000 billion yen, ‘business profit’ of Yen84.5 billion, and ‘operating profit’ of Yen87.0 billion.