ERJ staff report (DS)
Tokyo-The Yokohama Rubber Co., Ltd., has revised downward its projections for consolidated net sales and net income in the six months to 30 Sept., 2008. It expects net profit in the period to fall by 96.2 percent compared to last year, to just Yen 500 million (Euro 4.2 million). Other new projections call for net sales to increase 1.4 percent over the same period of the previous year, to 257.0 billion yen (Euro 2168 million), and for operating income to decline 54.6 percent, to 5.5 billion yen.
The revised projection for net sales is 2.7 percent lower than the projection Yokohama announced on May 12, when the company announced its results for the previous fiscal year. The projection for operating income is unchanged from the earlier projection, and the projection for net income is 75.0% lower.
Yokohama said the pessimistic forecast is based on the effect of "disconcerting trends in financial markets on demand in the United States and Europe and in other markets." The company said the sharp appreciation of the yen had diminished the yen-denominated value of foreign-currency assets, which had in turn hit profitability hard. HIgher taxes in Japan also played their part.
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Press release from Yokohama.