Tokyo – The Yokohama Rubber Co. (YRC) has reported record results for the first three months of the year, helped by a strong recovery in China.
Operating profit saw a sharp increase from Yen1.2 billion (€9 million) in the first quarter of 2020, to Yen36.7 billion in 2021, almost tripling the 2019 level of Yen12.8 billion.
Total sales grew 16% year-on-year to just under Yen150 billion, reaching the 2019 levels, Yokohama reported 14 May.
Sales within Yokohama’s tires business came in at Yen101 billion, up 16% compared to the first quarter of 2020 and surpassing 2019’s recorded sales of Yen100 billion.
Segment’s business profit rose to Yen9.2 billion, compared to a loss of Yen503 million recorded last year. The figure was over 500% higher than 2019’s recorded business profit of Yen1.5 billion.
Here, Yokohama said OE sales growth in China, driven by “resurgent demand”, more than offset declines in Japan and in North America.
Yokohama linked the declines in Japan and in North America to the adverse effect of shortages of semiconductor devices on vehicle production volume.
In replacement tires, sales revenue rose in Japan and overseas, helped by high-value-added products, expanded production and early-year snowfalls in Japan.
Yokohama’s ATG segment, which comprises off-highway tires for agricultural and industrial machinery, reported a strong first quarter, with both sales and business profit surpassing 2019 levels.
Segment revenue was up 45% year-on-year at Yen22.5 billion, while business profit almost doubled to Yen3.5 billion.
In Yokohama’s rubber products MB (multiple business) segment, sales declined 4% year-on-year to Yen23.7 billion, while business profit grew 65% to Yen1.5 billion.
Sales revenue in high-pressure hoses rose in Japan and overseas, led by strong sales of hoses for construction equipment, while demand for industrial materials was down slightly due to weak civil engineering market.
Sales remained flat in Hamatite sealants and adhesives unit, as strength in the automotive sector offset weakness in the construction sector. In aircraft fixtures and components, sales revenue was down on account of sharp declines in demand in the commercial and government sectors.