Yokohama reports gains in sales, earnings

ERJ staff report (LMH)

Tokyo - Yokohama Rubber Co. Ltd's sales and earnings for fiscal 2011, the year ending 31 March 2011, have increased solidly, the Japanese company said in a 20 May report.

Net sales at Yokohama increased 11.4 percent over the previous fiscal year, to yen 519.7 billion (euro 4452 million) from yen 466.4 billion. Operating income increased 37.5 percent, to yen 29.5 billion (euro 252.7 million) from yen 21.4 billion year-on-year. And net income increased 21.2 percent, to 13.9 billion yen.

Yokohama said it reinforced its sales momentum by securing market acceptance for price increases in tyres and other products, which helped offset the adverse effect on earnings of rising prices for raw materials and the appreciation of the yen. The company also noted that the fiscal results reflected a charge of 1 billion yen for the effects of the 11 March earthquake in Japan.

Sales in Yokohama's tyre operations increased 12.0 percent, to yen 411.6 billion (euro 3528.1 million) from yen 367.6 billion, and operating income increased 20.9 percent, to yen 25 billion (euro 214.3 million) from yen 20.6 billion.

The sales growth comprised gains in Japan and overseas, which more than offset the adverse effect earnings of the rising prices for raw materials and the appreciation of the yen, Yokohama said. In Japan, the firm added, tyre products for improving fuel economy earned a strong market reception, and the company's sales growth in replacement tires outpaced the overall growth in demand. Leading Yokohama's sales growth overseas were strong gains in the United States and in China.

Yokohama posted sales growth of 13.3 percent in industrial products, to 83.8 billion yen, and operating income increased 5.2-fold, to 3.0 billion yen. Those products centre on high-pressure hoses, sealants and adhesives, conveyor belts, antiseismic products, marine hoses, and pneumatic marine fenders.

Sales in other products, which include aircraft products and golf products, declined 2.0 percent, to 24.3 billion yen, but operating income climbed 6.9-fold, to 1.5 billion yen. The sales decline reflected weakness in golf products. The surge in operating income reflected sales gains in lavatory modules for commercial aircraft and progress in trimming costs.

Yokohama will change its fiscal year in 2011 to a January-December period, from the former April-March period. That will result in a one-time-only nine-month fiscal period: 1 April to 31 December 2011. The company projects that net sales in that nine-month fiscal period will total 471.0 billion yen, that operating income will total 21.0 billion yen, and that net income will total 11.0 billion yen.

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Press release from Yokohama