Yokohama 2018 earnings down on slightly higher sales

Tokyo — Yokohama Rubber Co. Ltd. reported slight drops in operating and net income for fiscal 2018 on record sales of $5.91 billion (€5.23bn).

Operating profit fell 1.4% to $486.3 million, mainly due to a $102 million asset impairment charge related to its Yokohama Tire Manufacturing Mississippi LLC subsidiary, the Japanese tire maker announced 14 Feb.

YRC attributed sales gains in its multiple business and Alliance Tire (ATG) business units for a revenue increase of 0.6%.

Tire business unit revenue, however, fell 1.1% to $4.13 billion on lower OE sales domestically and internationally and lower replacement in key international markets.

Revenue in the ATG segment increased 8.3% on the strength of gains in OE shipments.

This reflected a continuing recovery in demand for agricultural machinery.

YRC is forecasting improvements in sales and earnings for the current fiscal year — sales up 1.5% to $6 billion and earnings up 12.3%.

The company has not provided regional breakdowns.