Tokyo - The Yokohama Rubber Co., Ltd. now says it beleives ordinary profit will be Â¥3000 million (â‚¬20 million) in the first half of 2007, an increase of 173 percent on the forecast issued on 11 May this year. It said net profit will be over four times higher than the previous forecast.
The company revised its consolidated and non-consolidated forecasts for the first half of fiscal 2007 (six months to 30 Sept., 2006) saying it now expects net sales to be Â¥222 000 million for net sales, a 0.9% increase over the previous forecast. However, net income should now be closer to Â¥3300 million up 450 percent on the previous estimate.
In a statement, Yokohama said, "Although affected by increases in prices of raw materials, mainly natural rubber, the forecast for ordinary profit exceeds the previous one, reflecting improved cost reduction, profits from consolidated affiliates in North America, and a weaker-than-expected foreign exchange rate of yen. The current revised forecast for net income is attributable to an increase in extraordinary gain as a result of sale of some investment securities held by the company, in addition to the increased ordinary profit. We will publicize our consolidated and non-consolidated forecasts for the entire fiscal year at the time of announcing the results for the first half of this fiscal year."
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Download Yokohama's official statement (138k .PDF file)