TOKYO (Nov. 12, 2008) — Yokohama Rubber Co. Ltd.'s net income fell off sharply for the first half of the year, prompting company management to revise downward the firm's fiscal 2009 earnings projection.
The Japanese tire and rubber products maker said its net income slid 95.7 percent in the six months ended Sept. 30 to $5.2 million, on a 1.3-percent rise in sales to $2.42 billion. Operating income dropped 53.7 percent to $52.8 million.
Yokohama Rubber blamed the weakened earnings on the continuing upward trend in raw material prices, the appreciation of the yen and increases in logistics costs and other selling expenses.
The company expects to show a 54.9-percent decline in net profits and 21.5-percent falloff in operating income for the fiscal ending March 31, to about $90 million and $246 million respectively. The net income forecast is nearly 27 percent lower than previously projected.
Yokohama's Tire Group posted a 2.7-percent gain in sales to $1.83 billion, but operating income fell 64.6 percent to $30.2 million. Sales in North America were down 6.3 percent to $475.3 million, and operating income fell 46.4 percent to $18.6 million.