Tokyo-The Yokohama Rubber Co. Ltd. has reported a 3.7-fold increase in interim operating income from ¥3304 million (€20.4 million) to ¥12114 million-- for the six months ended 30 Sept 2007 -- compared to the same period in 2006.
The company's net income rose by 390 percent to ¥13026 million from ¥3361 million, year-on-year. This was as a result of â€œimproved profitabilityâ€ in Yokohama's North American subsidiaries, as well as from the upturn in operating profitability, said the company, in a 9 Nov statement.
Driving the profitability was Yokohama's Tire group. The group's operating income increased 8-fold to ¥9000 million, thanks to a 16.2 percent increase in sales to ¥188700 million, and improved profitability at Yokohama's subsidiaries in the US and in Asian nations besides Japan, according to Yokohama.
The rise in raw material did not affect the company's profitability, especially outside of Japan, where tyre sales grew by ¥7697 million. The weakening of the yen also contributed.
Yokohama's interim net sales increased 13.9 percent, to 253300 million.
Interim operating income in Yokohama's Multiple Business group increased 19.3 percent to ¥3000 million, and sales by 7.7 percent to ¥6460 million. This was thanks to gains in conveyor belts and marine fenders, in connection with resource-development projects.
For the full year, Yokohama retained the projections it announced on 9 Aug. It projected full-year increases of 39.3 percent in net income to ¥22800 million; 51.9 percent in operating income to ¥32000 million and 8.6 percent in net sales to ¥540000 million.
As a result of the company's strong first-half profitability, Yokohama has decided to raise its interim dividend by ¥1 to ¥6.(ss)
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Press release from Yokohama