Yokohama Net Income Rises Markedly
Yokohama Rubber has reported earning a net income of 9.0 billion yen (₤62.1 million) in the first three quarters of the present fiscal year, the nine months to December 31, 2009. That compares with net income of just 222 million yen in the same period of the previous fiscal year. Underlying the rebound in net income, the company explains, was a 0.1 per cent increase in operating income, to 17.3 billion yen (₤119.5 million). The improvement in profitability occurred despite a 16.2 per cent decline in net sales, to 344.0 billion yen (₤2.4 billion), and reflected a downward trend in raw material prices, reductions in selling and other expenses, and smaller losses on currency translation.
The company’s Tire Group sales declined 14.6 per cent in Yokohama’s Tire Group, to 272.8 billion yen (₤1.9 billion), reflecting weak sales in Yokohama’s largest markets, Japan and North America, and occurred despite sales gains in China and Russia. Also affecting sales adversely was the appreciation of the yen against the US dollar and against the euro.
Tire Group operating income increased 18.0 per cent in Yokohama’s Tire Group, to 16.8 billion yen (₤116.0 million). That increase occurred as declining raw material prices and cost reductions more than offset the effect of lower sales.