Tokyo— Yokohama Rubber Co. has registered a 42-percent decline in operating profit, to ¥6.9 billion (€55.8 million), for the first quarter of 2016, the Japanese firm has announced.
Net sales fell by 6.8-percent, to ¥129.3 billion, mainly driven by the appreciation of yen, volumes decline in vehicle production in Japan and a downward trend in tire prices worldwide.
According to Yokohama, those factors more than offset declining prices for raw materials.
In tire segment, operating income declined 41.9 percent, to ¥5.4 billion, on a 6.9-percent decline in sales to ¥100.8 billion.
Business in the OE sector in Japan slumped due to lower vehicle production, butt made gains in unit volume and in yen value in the local replacement market.
Unit sales grew outside Japan, although the value dropped due to currency effects.
Operating income declined 41.6 percent in Yokohama’s Multiple Business segment, to ¥1.4 billion, on a 6.9-percent decline in sales, to ¥27.1 billion.
Business in that segment principally includes high-pressure hoses; sealants; conveyor belts; anti-seismic products; and marine hoses and pneumatic marine fenders.