Yokohama sales growth ‘more than compensates’ rising material costs

Sales for Yokohama Rubber’s tyre operations increase 13.7 per cent in the first nine months of the fiscal year ending March 31, 2011, the company reports. During the nine months to December 31, 2010 Yokohama recorded tyre business sales of 310.2 billion yen (₤2.36 billion) and operating income of 23.2 billion yen (₤176.42 million), up 37.4 per cent year on year. The company reports this sales growth came through gains both in its domestic Japanese and international markets and it more than offset the adverse effect on profitability caused by rising raw material prices as a strengthening yen. Domestic market sales were helped by an economic rebound and heavy snows, which prompted strong winter tyre sales, while overseas growth was most notable in the US and China.

Total sales and earnings for Yokohama Rubber during the nine months to December 31 amounted to 390.4 billion yen (₤2.97 billion), a growth of 13.5 per cent over the same period of 2009. Operating income increased 52.2 per cent to 26.3 billion yen (₤179.46 million) while net income grew 25.2 per cent to 11.3 billion yen (₤85.93 million). Along with increased tyre sales, Yokohama reports sales gains for high-pressure hoses, sealants and other diversified products. Growth in these areas also more than compensated for rising raw material prices and the stronger yen, while Yokohama also notes that an increase in capacity utilisation rates and cost trimming measures also contributed to improved profitability.