ERJ staff report (RD)
Tokyo, Japan - The Yokohama Rubber Co., Ltd., announced today that its operating income increased 57.2 percent, to 33 100 million yen (Euro 206 million) in the 12 months ended 31 March 2008. Underlying that increase was a 10.9 percent increase in net sales, to 551.4 billion yen (Euro 3440 million). Yokohama posted sales gains in its Tire Group and Multiple Business (diversified products) Group. Management is warning that earnings for the current fiscal year will suffer from the continuing rise in materials costs and the effects of the weakening yen.
In Yokohama's Multiple Business Group, operating income rose 3.6 percent, to 7.0 billion yen (Euro 43 707 million), on a 5.5 percent increase in sales, to 131.6 billion yen (Euro 817 885 million). Leading the sales growth were gains in high-pressure hoses for construction and mining equipment, in conveyor belts, and in marine fenders.
Management at Yokohama expects the worsening business environment to affect profitability adversely in the fiscal year to 31 March 2009. Prices for raw materials appear likely to continue rising, and the recent appreciation of the yen will also diminish earnings.