Yokohama 2013 net income climbs 7.3%
Net sales, operating income and net income at Yokohama Rubber rose to record levels during the 2013 financial year, the company reports. It says this performance mainly reflected a tyre business recovery in North America and China along with strong winter tyre sales in the Japanese market.
Net income increased 7.3 per cent over the previous year to ¥35.0 billion (£206.0 million), on a 14.0 per cent increase in operating income, to ¥56.6 billion (£333.1 million) and a 7.5 per cent increase in net sales, to ¥601.6 billion (£3.5 billion). Based on this result, Yokohama’s management confirms its plans to increase the annual dividend from ¥20 to ¥22 (£0.13); this is made up of an interim dividend of ¥10, up from ¥8 yen in 2012, and a proposed year-end dividend of ¥12 yen, the same as for the previous financial year.
Operating income in Yokohama’s tyre operations increased 6.1 per cent, to ¥46.0 billion (£270.7 million) and sales increased 7.9 per cent to ¥479.5 billion (£2.82 billion). Outside Japan, the recovery in sales volume in North America and in China offset the adverse effects of slumping demand in Russia and elsewhere in Europe and escalating price competition worldwide. Yokohama also posted overall sales growth in Japan, bolstered by gains in both original equipment and replacement market tyres.
The gain in original equipment tyre sales in Japan occurred despite a decline in unit volume that accompanied lower vehicle production. It reflected vigorous demand for low-fuel-consumption vehicles, a sector that Yokohama serves with a large range of tyre sizes, and Yokohama’s success in winning fitments on additional vehicle models. Prices for replacement tyres softened in the Japanese market. Yokohama posted strong sales of summer tyres, however, and achieved record winter tyre unit volume.
Yokohama’s projections for 2014 fiscal year are for another year of record sales and earnings. The company projects that net income will reach ¥37.5 billion (£220.7 million) on operating income of ¥63.0 billion (£370.8 million) and net sales of ¥647.0 billion (£3.8 billion).