Tokyo – The Yokohama Rubber Co. has posted record first half results helped by a ‘resurgent momentum in tires in Japan and overseas’.
Operating profit for the first six months of the year increased 16-fold year-on-year and nearly doubled from the 2019 levels to Yen48.6 billion (€375 million), on a 28% higher sales of Yen304 billion, reported Yokohama Rubber 11 Aug.
The tire unit reported a strong growth both in sales and business profit, as revenue increased 26.7% to Yen211 billion. Business profit (sales revenue less the sum of cost of sales and selling, general and administrative expenses) stood at Yen16.3 billion, compared to a loss of Yen2 billion reported last year.
In this segment, Yokohama said sales of OE tires increased strongly, supported by recovering demand in Japan and in China. The increase, it said, was achieved despite the adverse effect of shortages of semiconductor devices on vehicle production volume worldwide.
In the replacement segment, sales revenue rose strongly in Japan and overseas, reflecting ‘vigorous promotion of high-value-added products and expanded production’.
Yokohama’s ATG (Alliance Tire Group) segment reported its highest-ever results during the first half as business profit rose 120% to Yen7 billion, on 60.5% higher sales of Yen48 billion.
The strong first half, it said, reflected ‘robust demand’ for off-highway tires for agricultural machinery and for industrial machinery.
The group's Multiple Business, which produces industrial components, reported an 81.6% increase in business profit to Yen2.1 billion, on 4.7% higher sales of Yen40 billion.
Here, sales revenue in hose & couplings rose in Japan and overseas, particularly driven by the construction and automotive industries.
Markets, Yokohama said, rebounded despite the adverse effects of the global shortages of semiconductor devices.
During the period, the Japanese manufacturer saw sales revenue in industrial products decline compared to last year, despite strong performance of conveyor belts.
The decline, Yokhama said, reflected weakness in civil engineering products, and in marine hoses & other products for the marine equipment market.
In aircraft fixtures and components, sales revenue was down on account of declines in demand in the commercial and government sectors.
Due to the strong results, Yokohama has revised upward the full-year fiscal projections for 2021 that it announced in May.
The group now expects revenue to come in at Yen655.0 billion, up 2.3% over the May projection.
Business profit is estimated at Yen51.5 billion, up 3.0% compared to May and operating profit is expected to come in at Yen73.5 billion, up 2.8% compared to the previous estimated.