Yokohama OP down 64.6 per cent

Yokohama Rubber Co., Ltd., posted an 11 per cent increase in net sales, to 106.8 billion yen (£486.7 million), in the three months ended 30 June. The increase resulted primarily from robust growth in overseas tyre business, according to the company. Tire sales also benefited from increased shipments to automakers in Japan. However, the rising prices for raw materials offset the sales growth in the Tire Group, and operating income in the group declined 64.6 per cent, to 1 billion yen (£4.56 million).

Increases in raw material prices had been larger than Yokohama management had expected resulting in the company giving a profit warning on 11 May. The management now expects operating income to decline 27.1 per cent in the 2007 financial year, to 16 billion yen, compared with the earlier projection of a 23.8 per cent decline, to 21.0 billion yen. The management maintains its earlier projection of a 7.3 per cent increase in net sales, to 485 billion yen.