Lacklustre domestic tyre sales slow Yokohama Rubber’s profits in 2015
Although Yokohama Rubber clocked up a fourth consecutive year of record sales in 2015, operating income and net income declined year-on-year as falling vehicle production affected the company’s original equipment business in Japan and both escalating price competition and a mild winter hit the country’s replacement market business. Yokohama’s net sales rose 0.7 per cent to 629.9 billion yen (£3.9 billion) in 2015, while operating income declined 7.7 per cent to 54.5 billion yen (£334.6 million) and net income dropped 10.4 per cent to 36.3 billion yen (£222.9 million).
Sales within Yokohama’s Tires segment increased 0.6 per cent to 500.6 billion yen (£3.1 billion), and operating income declined 11.4 per cent to 43.0 billion yen (£264.0 million). While unit volumes and sales value declined for both the original equipment and aftermarket segments in Japan, Yokohama’s tyre business achieved overall growth outside the country. The company states that it maintained strong sales momentum in North America and also recorded sales growth in China.
Sales for Yokohama’s Multiple Business segment increased 1.2 per cent to 121.7 billion yen (£747.2 million), while operating income was up 2.9 per cent to 10.5 billion yen (£64.5 million).
The company’s projections for 2016 call for net sales to increase 3.5 per cent to 652.0 billion yen (£4.0 billion). Management projects that operating income will increase 0.9 per cent to 55.0 billion yen (£337.7 million), and that net income will decline 6.4 per cent to 34.0 billion yen (£208.7 million).
Further information about Yokohama Rubber’s 2015 results can be found in the Tyrepress.com company profiles and reports section.