TOKYO (May 20, 2011)—Yokohama Rubber Co. Ltd. reported double-digit gains in earnings and sales for the fiscal year ended March 31, as higher unit sales coupled with rising prices offset the adverse effect on earnings of rising raw materials costs and an appreciating yen.
Operating income climbed 37.5 percent to $340.4 million, net income jumped 21.2 percent to $160.7 million and sales improved 11.4 percent to $6 billion, Yokohama said.
Leading the sales growth were gains in tires, high-pressure hoses, sealants and adhesives and in aircraft products, Yokohama said. Earnings also benefited from higher capacity-utilization rates and reduced costs.
The fiscal results reflect a charge against earnings of $11.5 million to account for the effects of the earthquake and tsunami that struck Japan's main island March 11.
Yokohama's tire operations increased operating income 20.9 percent to $288 million on 12-percent better sales of $4.75 billion. The sales growth comprised gains in Japan and overseas.
In Japan, Yokohama's tire products for improving fuel economy were well received and the company's sales growth in replacement tires outpaced the overall growth in demand. Leading Yokohama's sales growth overseas were strong gains in the U.S. and China.
Sales in North America grew 16.6 percent to $1.22 billion, while operating income attributable to North America more than doubled to $63.9 million, raising the earnings ratio nearly three percentage points to 5.2 percent.
Yokohama will change its fiscal year in 2011 to a January–December period, from the April–March period, which will result in a one-time-only nine-month fiscal period. The company projects net sales in that nine-month fiscal period will total about $5.5 billion with a net income of about $125 million.