Yokohama reports sales down but increases earnings

ERJ staff report (RD)

Tokyo -- Yokohama Rubber Co. Ltd. has reported sales for the fiscal year ended 31 March 2010 down by 9.8 percent to 466.4 billion yen (Euro 3953 million), compared to the same period last year.

The Tokyo-based company also reported sales down 8.1 percent to 367.5 billion yen and down 15.9 percent to 98.8 billion yen in its Yokohama Tire Group and Multiple Business Group respectively, a 12 May company statement said.

The company's tyre business did however report renewed growth in tyre sales in Japan in the fourth quarter: 1 Jan -- 31 March 2010. Operating income in unit more than doubled, rising 106.9 percent, to 20.5 billion yen. “The downturn in raw material costs and Yokohama's cost-cutting measures more than compensated for the decline in sales,” the statement said.

Yokohama's Multiple Business unit reported declines in two core products: hoses and conveyor belts, with operating income declining 74.3 percent, to 879 million yen, reflecting the overall weak sales performance, the company added.

Overall net earnings increased to 11.5 billion yen from -5.7 billion yen a year earlier, reflecting a surge in operating profitability, with operating income increasing 67.5 percent to 21.5 billion yen, mainly due to the reversal of the recent upward trend in raw material costs and the company's progress in reducing selling expenses and other costs, the statement said.

Yokohama projects a 30.4 percent decline in net income to 8 billion yen in the fiscal year to 31 March 2011. Management expects net sales to rise 11.5 percent to 520.0 billion yen, “buoyed by growing demand in an improving economic environment.” But it expects operating income to decline 16.1percent to 18 billion yen, on account of the appreciation of the yen and resurgent raw material costs, the statement said.

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Press release from Yokohama Rubber Co. Ltd.