Yokohama forecast up on strong 1st quarter results

TOKYO (Aug. 9, 2007) - Yokohama Rubber Co. Ltd.'s operating and net income more than doubled in the first quarter, prompting management to raise the firm's interim and full-year fiscal projections.

Yokohama attributed the unexpected earnings gains to robust sales in both tyres and non-tyre products, price hikes and a weakening yen.

For the quarter ended June 30, Yokohama posted operating earnings of ¥4259 million (€26.3 million) on sales of ¥121 600 million, improvements of 130.6 and 13.8 percent, respectively. Net income shot up 150.2 percent to ¥3137 million (€19.36 million).

Operating income for the Tire Group tripled in the period to ¥3069 million as sales increased 15.9 percent to ¥90 676 million on improved business in North America, Europe and Asia outside of Japan. The sales growth, coupled with the weakening yen and price hikes for Yokohama tyres, more than offset the continuing upward trend in prices for natural rubber and other raw materials, Yokohama said.

As a result of the stronger-than-expected first quarter results, Yokohama management now projects that net income will increase nearly 40 percent for the fiscal year ending 31 March, 2008, to about ¥22 800 million, and sales will grow nearly 9 percent to about ¥532 000 million.

From Tire Business (A Crain publication)

Press release from Yokohama