TOKYO (Jan. 21, 2009)—Yokohama Rubber Co. Ltd. predicted it will post a loss of $78 million for the fiscal year ending March 31 because of slumping demand and a stronger-than-expected yen.
Yokohama also anticipates its operating income will fall nearly 58 percent from fiscal 2008 to $156 million and sales to be 5.2 percent lower than last year, at about $5.8 billion.
The company said the global economic downturn caused its sales to slump, and its revised projections are based on annual average exchange rates of 100 yen per dollar, down nearly 3 percent from earlier projections. The exchange rate this week is roughly 89 yen per dollar.
The latest forecast also is considerably lower than the firm's projections issued Nov. 12.
Yokohama management is reconsidering the year-end dividend of 7 yen that it had planned to recommend.