TOKYO (Feb. 14, 2012)—Yokohama Rubber Co. Ltd.'s earnings for its truncated fiscal 2011 were relatively flat versus the comparable nine-month 2010 period, but sales improved 19.1 percent.
For the year ended Dec. 31—Yokohama Rubber changed its fiscal year to calendar year-end from March 31—operating income slipped 0.2 percent to $329.7 million on sales of $5.83 billion. Net income improved 2.6 percent to $145.7 million.
While the earnings performances were relatively flat compared to the 2010 period, they were significantly better than the company's projections issued in November. Yokohama Rubber said the improvements were based in stronger-than-expected replacement tire sales, price increases and reduced costs.
For 2012 Yokohama is calling for double-digit gains in operating and net income and sales, to roughly $50 million, $31 million and $7.2 billion, respectively, based on mid-February exchange rates.
Yokohama Rubber's Tire Business Staff Reported operating income of $293.1 million, a 0.9-percent improvement over the comparable 2010 period. Sales grew 22.3 percent to $4.76 billion.
In Japan, sales benefited from heavy snows, Yokohama Rubber said, which spawned demand for winter tires. Sales growth in Japan's replacement market more than offset a decline in deliveries to Japanese vehicle plants. That decline reflected a slump in vehicle production caused by parts shortages that resulted from floods in Thailand.
Yokohama's overseas tire business expanded, led by gains in Europe.
The company's overall business in North America—which includes revenue from the firm's hose and belting businesses—grew 7.5 percent to $3.53 billion.