TOKYO (March 25, 2010)—Yokohama Rubber Co. Ltd. has revised upward its sales and earnings forecast for the fiscal year ending March 31 based on a faster-than-expected recovery in tire sales.
Yokohama is forecasting operating income of $212.4 million and net income of $104 million—improvements of 12.9 and 34.3 percent over the company's previous forecast, issued last October. The projected operating income represents a 49.9-percent increase over the fiscal 2009 figure; YRC was in the red on a net basis in fiscal 2009.
Sales are expected to hit $5.2 billion, or 1.1 percent ahead of the earlier forecast but 9.1 percent below the fiscal 2009 revenue.
In restating its forecast, Yokohama said demand from auto makers in Japan has been stronger than expected, and heavy snowfall generated stronger-than-anticipated demand for winter tires in Japan. Tire demand in markets outside Japan, especially in Asian nations, has exceeded forecasts.
The upturn in sales has raised Yokohama's capacity utilization rate, meanwhile, which has fortified profitability further.
Yokohama is expected to report its fiscal 2010 results in mid-May.