ERJ staff report (LMH)
Tokyo -- Yokohama Rubber Co. Ltd's operating income has increased 182.8 percent, to Yen 26.3 billion (Euro 259 million) and a 1.5 percent increase in net sales, to Yen 393.1 billion in the first nine months of 2012, compared to the same period last year.
Yokohama noted that fiscal 2012 is the first 12-month fiscal period since Yokohama shifted to calendar-year accounting, from April-to-March accounting, and formal comparisons of three-quarter results are therefore impossible.
The nine-month gains in sales and in profitability reflected unit sales gains in tyres and in diversified products, progress in securing market acceptance for price increases, an abating of what had been a persistent upward trend in raw material costs, and continuing progress in reducing costs, Yokohama said.
In the third quarter, Yokohama's sales of tyres to automakers in Japan remained strong, but the company's business in tyres weakened overseas, and its business in industrial products and in other products weakened overall. Third-quarter sales also declined overseas, largely because of weakness in North America, but profitability improved in Yokohama's overseas tyre business as price increases took hold.
In tyre operations, Yokohama's operating income in the first three quarters increased 247.3 percent over the same period of the previous year, to Yen 21.6 billion, on a 0.9 percent increase in sales, to Yen 308.2 billion. Driving the nine-month sales and earnings growth were strong sales to automakers in Japan. Yokohama's business in the Japanese original equipment market remained robust in the third quarter, reflecting continued growth in vehicle production and Yokohama fitments on an increased number of vehicle models.
Operating income in Yokohama's industrial products operations in the first three quarters increased 130.7 period over the same period of the previous year, to Yen 3.5 billion, on a 6.3 percent increase in sales, to Yen 67.5 billion. That business consists mainly of high-pressure hoses, sealants and adhesives, conveyor belts, anti-seismic products, marine hoses, and marine fenders.
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News release from Yokohama