Yokohama Rubber raises outlook on record half-year results

Hiratsuka, Japan – Yokohama Rubber Co. (YRC) has raised its full-year outlook following record results over the first six months of 2025.

The Japanese group now expects revenue to come in at Yen1,235 billion (€7.1 billion), up from an estimate of Yen1,220 in February and 12.8% up year-on-year.

Earnings (business profit) is expected to reach Yen153 billion, up considerably compared to the February estimate of Yen138 billion and 13.9% year-on-year.

The upward revision was mainly prompted by the group's strong first half results, which beat previous estimates by YRC.

Over the six months to end of June, revenue increased 10.3% year-on-year to Yen579.2 billion while earnings grew 13.8% to Yen62.1 billion, YRC said 12 Aug.

While both figures represented new record highs for first-half results, operating profit fell 2.5% year-on-year to Yen54.9 billion.

On the operating environment, YRC said consumer spending in Japan "picked up moderately" during the six-month period, helped by improvements in the employment and income.

YRC noted that overall business sentiment in the domestic manufacturing industry had been “resilient despite increasing uncertainty created by geopolitical risks and US tariff policies.”

In overseas markets, the business environment in the US deteriorated amid rising uncertainties and inflation expectations caused by tariff rate hikes.

In Europe, sentiment was boosted by the increase in exports generated by "last-minute demand before US tariff hikes took effect."

In China, YRC said economic conditions have improved following a US-China agreement that lowered the additional tariff rates on Chinese imports.

Breaking down segments' performance, tire division’s sales increased 11.5% year-on-year to yen523 billion, accounting for 90.4% of the overall group revenue. Segment earnings rose 9.4% to Yen56.5 billion.

OE revenue improved year-on-year on stronger sales in Japan as well as the expansion of shipments for Chinese new energy vehicle makers.

Replacement tire sales also increased compared to the first half of 2024, supported by higher sales in Japan as well as the increased demand for high-inch tires in Europe.

Off-highway tire (OHT) business, part of the overall tires division, reported an 18% increase in revenue to Yen186 billion, with a strong contribution from the off-the-road tire (OTR) business acquired from Goodyear in February.

The unit’s earnings, however, dropped 15.7% over the six months, partly affected by the Goodyear OTR acquisition in the first quarter.

The OE farm tire market remained “difficult” but YRC noted “signs of a recovery since this spring.”

In the replacement market, the OHT business continued its efforts to expand sales in all regions, including strengthening its marketing of the Mitas brand.

The non-tire MB (multiple businesses) segment reported a slight decline in sales to Yen51.3 billion, down from Yen51.5 billion reported in the first half of 2024.

The segment’s hose & couplings business posted a year-on-year drop in sales due to lower demand from construction machinery makers in Japan and car makers in North America.

The industrial products business revenue increased on last year, helped by “continued solid sales of conveyor belts.”

The conveyor belts business, YRC said, holds the “top share” in the Japanese market, contributing to stable orders from major customers.

The segment also reported an increase in demand for its marine products, which helped offset lower sales of aerospace products.