TOKYO (Feb. 13) — Yokohama Rubber Co. Ltd. suffered double-digit declines in operating and net income for the nine months ended Dec. 31, but sales were up and management is raising its full-year forecast over that issued in November.
Operating income fell 18.3 percent, to $147 million, largely on the effects of higher raw materials costs. Net income slipped 29.8 percent, to $117.8 million, on the additional effect of a tax benefit the previous year that enhanced fiscal 2006 results.
Sales on other hand rose 10.2 percent to $3.16 billion on improved sales of both tires and non-tire products. As a result, the operating income- and net income-to-sales ratios slipped noticeably to 4.6 and 3.7 percent, respectively.
Yokohama Tire Group´s sales grew 11.2 percent in the period to $2.38 billion, with business particularly strong in Europe and throughout Asia/Oceania. Operating income fell 29.9 percent to $110.9 million, or 4.7 percent of sales.
For the fiscal year ending March 31, Yokohama management predicts sales will be up 9.5 percent over fiscal 2006 to $4.3 billion and operating income will be about $185 million. Both are slight improvements over the forecast issued in November and are based on a weaker yen than previously assumed and a moderation in price increases for natural rubber and other raw materials.