ERJ staff report (DS)
Tokyo -- Despite turmoil in the raw materials sector, Yokohama Rubber Co turned in stable first quarter results. The company said revenues for the three months ended 30th June, 2008 were up by 1.3 percent, to yen 123 100 million (Euro 745 million). while operating income fell by just 3.3 percent, to yen 4100 million (euro 24.83 million). Net income declined 7.2 percent, to yen 2900 million. Yokohama's adoption of a new accounting standard resulted in a loss on inventory valuations.
By business segment, increased tyre sales more than offset lower sales in the multiple business group. In the tyre group, sales increased 2.5 percent over the same period of the previous year, to 93.0 billion yen, and operating income increased 5.6%, to 3.2 billion yen. Improved profitability at Yokohama's production subsidiaries in Thailand, the Philippines, and China supplemented the earnings contribution of overall sales growth.
In the multiple business group, sales declined 2.4 percent, to 30.2 billion yen, and operating income declined 12.1 percent, to 1.0 billion yen. The multiple business group has a high degree of exposure to the dollar, and the weakening of the dollar against the yen, compared with the same period of the previous year, affected profitability adversely. Also weighing on profitability was the continuing rise in raw material costs.
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Press release from Yokohama