Tokyo – Yokohama Rubber Co. Ltd. (YRC) reported higher earnings and record sales for fiscal 2017.
Operating income rose 22.7% to Yen51.9 billion (€393 million) million on 12.1% better sales of Yen668.0 billion, increasing the operating ratio three-fourths of a point to 7.8%.
Net income jumped 87.5% to Yen35.2 billion.
YRC did not elaborate on specific reasons for its earnings improvements. Most of its major competitors reported earnings declines for the same period because of elevated raw materials costs.
Yokohama's tire segment reported 10.3% improved operating income of Yen40.0 billion on 6.9% higher sales of Yen481.6 billion, as the company recorded increased OE and replacement business both domestically and in selected international markets. Yokohama said "winning factory fitments on premium-grade" cars is a strategic priority.
Sales in the ATG OTR tire segment — agricultural, industrial, construction, and forestry tires — of Yen63.4 billion were "consistent with management's expectations." Sales were more than double those in 2016, but the prior year covered just six months of revenue from the Alliance Tire Group acquisition.
Yokohama is forecasting 10.7% and 3.7% gains in operating income and sales for the current fiscal year, along with a 1% gain in net income.