TOKYO (Nov. 10) — Yokohama Rubber Co. Ltd. suffered double-digit drops in operating and net income in the first half ended Sept. 30 despite 10.5-percent sales growth.
Yokohama cited higher raw materials costs and a one-time tax benefit in the year-ago period for the earnings declines.
Operating and net income slipped 31 and 74.8 percent, respectively, to $28.6 million and 29.5 million, while sales grew to $1.93 billion.
Leading the sales growth were strong gains in the tire business in North America—where sales grew 20.6 percent to $400.2 million—and in Asian nations besides Japan along with higher sales of hose and aircraft parts, Yokohama said.
Tire group prorated income fell 69.7 percent to $9.54 million on 11.5-percent higher sales of $1.41 billion.
Yokohama said it believes the upward trend in raw material prices is subsiding, prompting management to revise upward full-year projections for sales, operating income and net income.