Tokyo – Yokohama Rubber Co. Ltd has posted a 32.3% year-on-year rise in operating earnings to $242.6 million on first-half sales 1.8% higher at $2.85 billion, the company announced 10 Aug.
YRC cited raw materials, exchange rate differences and the price/mix factor as reasons for the earnings improvement. Combined, these offset negatives such as lower tire unit sales volume and higher fixed costs.
On the revenue side, YRC attributed the relatively low growth to reduced overseas replacement tire market sales, which were a reflection of a sales surge in the same period of fiscal 2017 in advance of announced price hikes.
Otherwise, tire division sales revenue increased in the OE sector, both domestically and overseas, as increased sales of higher value-added products offset a drop in vehicle production in Japan. Domestic replacement sales were up, led by strong demand for winter tires, YRC said.
Tire Division operating income jumped 10% to $144.3 million on 0.6% lower revenue of $1.97 billion, raising the operating ratio to 7.3%.
The Alliance Tire Group off-road tire business reported a 16.9% rise in operating income to $39.5 million on 10% higher revenue of $144.3 million. Sales were buoyed by gains in the OE business and a recovery in demand for agricultural machinery, YRC said.
As stated, YRC is sticking with its earlier fiscal 2018 forecast, which calls for modest improvements in sales and earnings over fiscal 2017.