TOKYO (May 12, 2010)—Yokohama Rubber Co. Ltd. returned to the black for the year ended March 31, but management is projecting double-digit declines in operating and net income for fiscal 2011, based on surging raw materials costs and the appreciation of the yen.
Yokohama reported operating income last year rose 67.5 percent to $231.4 million on 9.8-percent lower sales of $5.02 billion. Net income was $123.8 million, reflecting “a surge in operating profitability” based on lower raw materials costs and reduced selling and other operating costs, the firm said.
For fiscal 2011, Yokohama expects drops of 30.4 and 16.1 percent in net and operating income, respectively, despite a projected 11.5-percent jump in sales.
Tire Group sales fell 8.1 percent to $3.96 billion, although the firm noted resurgent sales in its key markets in the fourth quarter. Operating profit more than doubled to $220.7 million as lower materials costs and Yokohama's internal cost-cuting measures more than compensated for the lower sales.
The comapny reported sales in North America dropped 11 percent to $974.7 million; operating income fell 46.5 percent to $23.2 million.