Yokohama Rubber posts record results, expects further gains in 2025

Hiratsuka, Japan — Yokohama Rubber Co. (YRC) has posted record sales and earnings in 2024, with revenue exceeding the Yen1,000-billion (€6.4 billion) mark for the first time in the group’s history.

For the full year, YRC reported earnings (business profit) of Yen134 billion, up 35.6% year-on-year, on 11% higher sales of Yen1,100 billion, the group reported 19 Feb.

The Japanese group linked the strong earnings growth to higher volumes, ‘optimal pricing’, and higher sales of large consumer tires.

Furthermore, a ‘full-year’ contribution from off-road tire acquisition Y-TWS and the depreciation of the yen helped push up results.

YRC expects 2025 be another record year, with revenue projected to increase 11.4% to Yen1,220 billion and earnings to grow 2.7% to Yen138.0 billion.

Overall, YRC’s ‘Tires’ business, which includes both consumer, truck & bus and off-road tires, reported a 12% year-on-year sales increase to Yen980 billion, while the non-tire multiple business saw a 3.3% increase in revenue to Yen105 billion.

The passenger car and truck & bus tires business saw an 8% increase in sales to Yen690 billion, helped by higher volumes and a favourable exchange rate impact.

Off-road tire segment, including Yokohama Off-Highway Tires (YOHT) and Y-TWS, reported gains with YOHT seeing a 7.7% year-over-year increase in sales to Yen142 billion and Y-TWS a 44% rise to Yen149 billion.

Earnings within the overall Tires division grew 28% year over year to Yen127 billion, reflecting a sharp fourfold increase in Y-TWS earnings to Yen9 billion.

Here, YRC said higher volumes, exchange rate effect, lower costs, price/mix and Y-TWS were the key drivers of growth, offsetting higher costs of raw materials and fixed costs.

The multiple business also reported a 20% increase in earnings to Yen8.5 billion.