TOKYO (Nov. 2, 2009)—Yokohama Rubber Co. Ltd. suffered operating and net losses for the half year ended Sept. 30 on 21.3-percent lower sales and the effects of an appreciating yen.
Despite the first-half losses, Yokohama is sticking with its earlier projections that it will be in the black for the full year, reversing the fiscal 2009 net loss.
For the six months ended Sept. 30, the operating and net losses were $26.3 million and $42.8 million, respectively, whereas sales plunged to $2.22 billion.
Profitability suffered from the effects of deteriorating productivity caused by shrinkage in unit sales volume of tires and high-pressure hose, Yokohama said, which more than offset Yokohama's progress in reducing costs.
Yokohama's Tire Group posted an operating loss of $27.4 million as sales dropped 19.5 percent to $1.7 billion on weaker demand in the company's principal markets in Japan, North America and Europe.
The Multiple Business Group saw operating income plunge 93.6 percent on 26.7-percent lower sales.
Yokohama's collective business in North America fell nearly $10 million into the red as sales were off 19.5 percent to $445 million.
For the full year ending March 31, 2010, Yokohama said it expects to post net income of about $77 million on 10.1-percent lower sales of $5.1 billion. The latest sales projection is about 5 percent lower than the firm's earlier forecast, reflecting the lower-than-expected first-half sales.