TOKYO (Aug. 10) — Yokohama Rubber Co. Ltd.´s operating and net income more than doubled in the first quarter, prompting management to raise the firm´s interim and full-year fiscal projections.
Yokohama attributed the unexpected earnings gains to robust sales in both tires and non-tire products, price hikes and a weakening yen.
For the quarter ended June 30, Yokohama posted operating earnings of $34.5 million on sales of $986.2 million, improvements of 130.6 and 13.8 percent, respectively. Net income shot up 150.2 percent to $24.4 million.
Operating income for the Tire Group tripled in the period to $24.9 million as sales increased 15.9 percent to $735.4 million on improved business in North America, Europe and Asia outside of Japan. The sales growth, coupled with the weakening yen and price hikes for Yokohama tires, more than offset the continuing upward trend in prices for natural rubber and other raw materials, Yokohama said.
In North America, sales grew 7.8 percent to $714.7 million, but operating income fell 67.1 percent to $1.52 million.
As a result of the stronger-than-expected first quarter results, Yokohama management now projects that net income will increase nearly 40 percent for the fiscal year ending March 31, 2008, to about $185 million, and sales will grow nearly 9 percent to about $4.4 billion.