Yokohama Results Show Strong Tyre Sales in Emerging Markets
The Yokohama Rubber Co., Ltd., has reported a 1.3 per cent increase in net sales, to 123.1 billion yen (£582.1 million), in the three months ended June 30, the first quarter of the 2009 fiscal year. This result came on the back of, the company explained, continuing Tire Group expansion that more than offset lower sales in the Multiple Business Group. Within Yokohama’s tyre business, sales increased most markedly in the Japanese OE market and for replacement market sales in emerging economies and natural resource exporting nations, including Russia, Latin America and the Middle East. Sales within the tyre business increased 2.5 per cent to 92.95 billion yen (£439.4 million).
Operating income declined 3.3 per cent, to 4.1 billion yen (£19.5 million), reportedly due to rising raw material and logistics costs. Net income declined 7.2 per cent, to 2.9 billion yen (£13.8 million). Operating income at Yokohama Tire increased by 5.6 per cent to 3.2 billion yen (£15.3 million).
Company management abides by the full-year fiscal projections that Yokohama announced in May. The yen has weakened further against the dollar and the euro than management had anticipated, and that has ameliorated the adverse earnings impact of the continuing rise in raw materials costs. Therefore, Yokohama management projects that net sales will increase 2.5 per cent, to 565.0 billion yen (£2.7 billion) in the fiscal year to March 31, 2009; operating income will decline 21.5 per cent, to 26.0 billion yen (£122.9 million); and net income will decline 38.3 per cent, to 13.0 billion yen (£61.5 million).