Tokyo – Yokohama Rubber Co. has reported growth in both sales and operating profit during the first three months of the year, led by OE sales in China and other Asian markets.
The Japanese company announced 14 May that operating income for the three months rose 27.5% to Yen14.1 billion (€107.7 million), on sales revenue up 2.3%, at Yen149.2 billion.
In the tires segment, sales revenue increased overall, led by strength in the OE business in China as well as in other Asian markets outside Japan.
Revenue declined overseas in replacement tires compared to a surge of overseas sales in the first quarter of 2017 – ahead of price increases.
Japanese business in replacement tires grew as a result of winter tire demand and “excellent market reception” for the recently launched iceGUARD 6 studless snow tire.
Sales also rose overall in the Multiple Business segment, led by business expansion in high-pressure hoses and in industrial materials.
This was despite declines in Hamatite-brand sealants and adhesives and in aircraft fixtures and components.
In the ATG segment, revenue increased 13.4% to Yen16.9 billion, thanks to strong gains in OE business.
This segment comprises business in tires for agricultural machinery, for industrial machinery, and for other off-highway applications.
Increased sales revenue at ATG reflected a recovery in demand for agricultural machinery, Yokohama stated.