Tokyo -- Yokohama Rubber Co. (YRC) Ltd., buoyed by its operating units in North America and throughout Asia, reported a near doubling of operating and net income in the first nine months of its fiscal year on 11.4-percent higher sales.
For the nine months ended 31 Dec., Yokohama reported operating and net income of Yen 30 759 million (Euro 197 million) and $Yen 25 734 million (Euro 165 million) , increases of 80.2 and 88.1 percent, respectively. Sales hit Yen 409 720 million (Euro 2622 million) for the period.
YRC singled out improved profitability at its North American operations for boosting profits overall. The firm's operating income in North America was up 134.5 percent to Yen 5419 million on 15.3-percent higher sales of Yen 83 181 million, yielding an earnings ratio of 6.5 percent.
YRC also attributed the improved earnings to the higher sales, which more than offset the adverse earnings impact of rising raw materials, logistics and administrative costs.
Tire Group operating income jumped 98.8 percent to yen 25 606 million on 13.1-percent higher sales of Yen 312 488 million. The Multiple Business Group reported operating income of yen 5101 million on sales of yen 97 231 million.
While acknowleding that continuing rises in raw material costs and the recent appreciation of the yen â€œpreclude easy optimism about the business outlook,â€ Yokohama management said it is sticking by its earlier full-year fiscal projections of a 39.2-percent rise in net income, a 51.9-percent jump in operating earnings and an 8.6-percent increase in sales.
From Tire Business (A Crain publication)
Press release from Yokohama