TOKYO (Oct. 26, 2007) — Yokohama Rubber Co. Ltd. has revised upward its earnings projections by nearly 30 percent for the six months ended Sept. 30.
Yokohama Rubber now expects operating income to hit $100 million, an increase of 3.5 times over the year-ago period and 27.8 percent higher than the firm's forecast disclosed in early August. Net income should hit $110 million, 3.7 times that reported a year ago and 66.7-percent higher than the earlier forecast.
Net sales should hit $2.2 billion, unchanged from the earlier projection.
Yokohama Rubber attributes the revision to stronger-than-expected sales growth in markets outside Japan, improvements in the structure of earnings in Yokohama´s North American tire operations and the weaker-than-expected yen.
The revised net income forecast reflects a larger-than-expected tax benefit realized in connection with the improved profitability in Yokohama's North American tire operations.
Yokohama will disclose its half-year results on Nov. 9.