TOKYO (Nov. 1) — Yokohama Rubber Co. Ltd. revised its forecast for ordinary profit up 172.7 percent to $25.5 million for the first half of fiscal 2007.
Net profit also will be more than four times higher than the previous forecast, issued in May.
The company revised its consolidated and non-consolidated forecasts for the first half of fiscal 2007-the six months ending Sept. 30-saying it now expects net sales to be $1.88 billion, a 0.9-percent increase over the previous forecast. Net income should be closer to $28 million, up more than fivefold from the previous estimate.
"Although affected by increases in prices of raw materials, mainly natural rubber, the forecast for ordinary profit exceeds the previous one, reflecting improved cost reduction, profits from consolidated affiliates in North America and a weaker-than-expected foreign exchange rate of yen," Yokohama said in a statement. "The current revised forecast for net income is attributable to an increase in extraordinary gain as a result of (the) sale of some investment securities held by the company, in addition to the increased ordinary profit."