Yokohama reports record nine-month 2017 net sales results
Operating income up 39.7 per cent in the period
Yokohama Rubber Co., Ltd. has reported net sales of 466.79 billion yen in the first ninth months of 2017 – a new record for this period. Of this figure, 333.13 billion yen was generate by sales of tyres (excluding Alliance Tyre Group operations, which are included in the firm’s accounts following the business’ acquisition in September 2016). Therefore, profit attributable to owners of parent increased 96.4 per cent over the same period of the previous year, to 16.7 billion yen, on a 39.7 per cent increase in operating income, to 26.4 billion yen.
According to the company, the strong fiscal performance was driven by results in Yokohama’s Tires segment. Operating income in that segment rose 14.8 per cent, to 19.0 billion yen, on – as we have seen – a 7.3 per cent increase in sales, to 333.1 billion yen. Yokohama achieved the gain in operating profitability despite the adverse effect of upward movement in prices for raw materials.
In the original equipment market for tyres, Yokohama’s sales increased solidly overseas, led by especially strong gains in China and Russia. Yokohama also posted gains in unit volume, in sales value, and in operating income in replacement tyres. Those gains included sales expansion in overseas markets, led by strong growth in Russia and in Southeast Asia. They benefited in Japan from the successful launch of the iceGUARD 6 studless snow tyre and from strong sales for other high-value-added products.
In the ATG segment, sales of tyres for agricultural machinery, industrial machinery, and other off-highway applications increased in the original equipment market and in the replacement market in line with management’s expectations.
Yokohama abides by the full-year fiscal projections that it announced in August 2017 for sales and earnings. Those projections call for profit attributable to owners of parent to total 30.0 billion yen on operating income of 50.0 billion yen and net sales of 660.0 billion yen.