Yokohama Rubber revises up medium-term targets on record H1, TWS acquisition
19 Aug 2024
Japanese group 'more than doubled' earnings in first half of this year to Yen54bn
Hiratsuka, Japan – Yokohama Rubber Co. (YRC) has revised up the financial targets in its medium-term management business plan following record first-half sales and earnings.
‘Yokohama Transformation 2026' (YX2026) is now expected to deliver business profit of Yen150 billion (€916 million) by yearend 2026, 15% above the previous estimate in February.
The Japanese group has also raised its sales outlook for 2026 by nearly 9% to Yen1,250 billion compared to its previously issued estimate, YRC announced 9 Aug.
YRC linked the revisions to “the realisation of ‘technological and production transformation’” and expected, new earnings from the acquisition of Goodyear’s off-road tire business.
For the six months to 30 June, YRC more than doubled business profit year-on-year: from Yen25.5 billion in the first half of 2023 to Yen54.5 billion this year.
Group sales for the period increased 18.5% year-on-year to Yen525 billion, YRC reported 9 Aug.
Tire operations posted a 20.6% year-on-year increase in first half revenue to Yen470 billion, while business profit grew 124% to Yen51.7 billion.
Overall, OE passenger car tire sales were higher than last year due to a positive forex impact and an easing of the impact of lower automotive production in Japan last year.
These factors ‘outweighed’ the negative impact of “continued weakness” in business with Japanese car makers located in China.
Sales of replacement tires came in higher than last year, reflecting increased sales domestically and overseas in Europe, India and other Asian markets.
YRC's off-highway tire (OHT) business posted 12% year-on-year increase in first half revenue to Yen75 billion.
Meanwhile, the recently acquired Y-TWS (formerly Trelleborg Wheel Systems) unit more than doubled sales to Yen82 billion, from Yen30 billion in the first half of last year.
At YRC’s Multiple Businesses segment, first half sales rew 5.1% year-on-year to Yen51.5 billion, while segment business profit increased 24% to nearly Yen3.4 billion.
