TOKYO (July 30, 2010)—Yokohama Rubber Co. Ltd. posted net income of $18.4 million for the first quarter of its fiscal year ended June 30 due to a turnaround in operating profitability.
The company posted operating income of $67.8 million in the fiscal first quarter, compared with an operating loss of $47.1 million in the same period in 2009.
Yokohama's net sales climbed 23.4 percent over the same quarter of the previous fiscal year, to $1.4 billion.
Profitability improved as an upturn in capacity and progress in cutting costs more than offset the rising raw material costs and the appreciation of the yen, the tire maker said.
Strong growth in unit sales of tires, buoyed by global economic recovery, led Yokohama's gains in sales and earnings.
Operating income in Yokohama's tire operations totaled $60.9 million, up from a first-quarter loss of $42.5 million in fiscal 2010.
Group sales rose 25.5 percent to $1.06 billion. Yokohama's unit sales in Japan increased in the replacement market and in the original equipment market, and the company also posted unit sales gains in overseas tire markets, led by growth in North America and in Asia.
Yokohama said it is projecting operating income to total $45.9 million in the first half of fiscal 2011, which runs from April 1 through Sept. 30. That compares with an operating loss of $27.6 million in the same period of 2009.
Underlying the projected upturn in operating profitability is projected sales growth of 17.8 percent.
Yokohama said it would release six-month fiscal year results Nov. 1.