Yokohama 1Q operating income quadruples to 9.3 billion yen
The Yokohama Rubber Co., Ltd., has reported that first quarter net sales (1 January to 31 March) increased 7.4 per cent over the same period of the previous year to 135.3 billion yen. At the same time operating income increased 403.3 per cent, to 9.3 billion yen; and net income increased 389.7 per cent, to 8.8 billion yen. According to the company, the first-quarter sales growth reflected strong gains in OE sales to Japanese OEMs as well as progress in raising prices for tyres and other products.
Sales in Yokohama’s tyre operations increased 10.5 per cent, to 107.2 billion yen, and operating income increased more than 20-fold, to 7.9 billion yen. Vehicle production in Japan increased sharply as automakers recovered from the effect of the East Japan Earthquake of March 2011, explaining the sharp recovery in the company’s OE sales. However replacement tyres sales in Japan declined despite stronger-than-expected growth in sales of winter tyres. Price increases enabled Yokohama to post sales growth in replacement tyres overseas despite weakening demand in North America and in European nations other than Russia.
As a result of the figures published 11 May 2012, Yokohama has revised upward the fiscal projections that it announced in February 2012 for the first half of the year. Revised projections call for interim net sales of 278.0 billion yen, compared with the earlier projection of 268.0 billion yen; for interim operating income of 18.0 billion yen, compared with the earlier projection of 12.8 billion yen; and for interim net income of 14.0 billion yen, compared with the earlier projection of 9.0 billion yen.