Yokohama Rubber posts record first-quarter sales, earnings

Hiratsuka, Japan — Yokohama Rubber Co. (YRC) has reported record first-quarter sales and business profit, supported by strong tire sales, higher off-highway (OHT) volumes and structural reforms.

Sales for the three months to end of March increased 10.4% year-on-year to Yen303.8 billion (€1.6 billion), while business profit rose 84.6% to Yen44.4 billion, said the Japanese tire and rubber group 15 May.

According to YRC, sales revenue and business profit both reached “new highs for a first quarter,” while business profit margin rose to a record 14.6%.

The sharp increase in business profit was attributed to “increased sales of high-value-added tires (AGW) and high-inch tires” in the consumer tire business, higher OHT sales volumes.

Furthermore, the group cited, profitability improvements in the industrial segment and “various internal efforts to drastically reduce costs and implement structural reforms” for the gains.

The Tire segment generated sales revenue of Yen278.118 billion, up 11.1% year-on-year and representing 91.5% of group sales.

Segment business profit nearly doubled to Yen42 billion, up from Yen22 billion reported in the first quarter of 2025.

In consumer OE tires, revenue increased year-on-year as “strong sales in Japan of vehicle models equipped with Yokohama tires compensated for the continued weakness in Japanese automakers’ sales in China,” the group said.

Replacement tire sales also increased overall, despite weaker sales in North America due to “unfavourable weather conditions and other factors.”

YRC said strong sales of “high-inch and other high-value-added tires in Europe,” combined with efforts to develop new customers and expand existing business in China, India and other regional markets, supported replacement tire growth.

The off-highway tire (OHT) business, part of the overall ‘Tire segment, saw sales rise by nearly 20% to Yen105.5 billion, as business profit grew significantly from Yen3.9 billion in the first quarter of 2025 to Yen11.8 billion this year.

YRC said the OHT operations posted higher sales despite what a “harsh demand environment.”

Sales of agricultural machinery tires increased as efforts to strengthen customer relations helped YRC increase market share “amid gradually rebounding demand.”

In replacement tires, the company said promotion of its “multi-brand strategy” centred on the Mitas, Alliance and Galaxy brands, along with recovering demand in North America, contributed to higher sales.

The MB (Multiple Businesses) segment posted sales of Yen24 billion, up 4.2% year-on-year while segment operating profit grew 22% year-on-year to Yen2.2 billion.

Within the segment, hose & couplings sales declined as lower North American vehicle production offset strong replacement demand for hydraulic hoses in Japan.

Industrial products sales, however, increased over last year-on-year.

YRC said the business maintained a “high share” of the conveyor belt market while continuing to secure new marine products contracts and expand sales of defence-related equipment.

The group also announced upward revisions to its fiscal 2026 full-year earnings forecast released in February.

The new forecast is for sales revenue of Yen1.3 trillion (unchanged), business profit of Yen188.0 billion (unchanged), operating profit of Yen191.5 billion (up 10.7% compared to previous forecast), and profit attributable to owners of the parent of Yen109 billion (21.1% higher than the previous forecast).