Yokohama Rubber Raises Sales and Earnings Projections
Yokohama Rubber has raised its projections for consolidated net sales and earnings in the fiscal year to March 31, 2010. The company now projects a net income of 9.4 billion yen (£69.2 million), compared with a net loss of 5.7 billion yen in the previous fiscal year. It projects that operating income will rise 49.9 per cent to 19.2 billion yen (£141.3 million), and that net sales will decline 9.1 per cent, to 470.0 billion yen (£3.5 billion). The projection for net income is 34.3 per cent higher than the projection announced on October 30, 2009; the projection for operating income is 12.9 per cent higher; and the projection for net sales is 1.1 per cent higher.
Underlying the improved sales and earnings outlook, explains Yokohama, is a faster than expected recovery in tyre sales. Demand from vehicle manufacturers in Japan has been stronger than expected, and heavy snowfall has generated stronger than anticipated demand for winter tyres there. In addition, tyre demand has exceeded forecasts in markets outside Japan, especially within Asia. The upturn in sales has raised Yokohama’s capacity utilisation rate, further boosting profitability.