Yokohama Rubber: Income, Profit up in Jan-Sept, 2017
The Yokohama Rubber Company Limited has reported an increase of 96.4% in profit to 16.7 billion yen for the first three quarters of 2017 (January to September) over the same period in 2016. The operating income is up by 39.7% to 26.4 billion yen. Net sales increased by 13.8% to 466.8 billion yen, highest ever for the first three quarters. Yokohama achieved the gain in operating profitability despite the adverse effect of upward movement in prices for raw materials.
In the original equipment market for tyres, Yokohama’s sales increased solidly overseas, led by especially strong gains in China and Russia. Yokohama posted gains in unit volume, in sales value, and in operating income in replacement tires. Those gains included sales expansion in overseas markets, led by strong growth in Russia and in Southeast Asia. They benefited in Japan from the successful launch of the iceGUARD 6 studless snow tyre and from strong sales for other high-value-added products.
Yokohama abides by the full-year fiscal projections that it announced in August 2017 for sales and earnings. Those projections call for profit attributable to owners of the parent to total 30 billion yen on operating income of 50 billion yen and net sales of 660 billion yen.
Sales and operating income declined in Yokohama’s MB segment. Yokohama posted sales gains in high-pressure hoses, in industrial materials, and in Hamatite-brand sealants and adhesives, but sales declined in aircraft fixtures and components on account of weakness in the commercial sector.
In the ATG segment, sales of tires for agricultural machinery, industrial machinery, and other off-highway applications increased in the original equipment market and in the replacement market in line with management’s expectations.