TOKYO (Aug. 13, 2012)—Yokohama Rubber Co. Ltd. has revised upward its earnings and sales forecasts for fiscal 2012 after posting markedly improved results for the first half of the fiscal year.
Yokohama's operating and net income for the six months ended June 30 quadrupled to $250.2 million and $171.6 million, respectively, on 7-percent higher sales of $3.38 billion.
Yokohama Rubber attributed the surge in profitability to unit sales gains in tires and in diversified products, progress in securing market acceptance for price increases, an abating of what had been a persistent upward trend in raw material costs and continuing progress in reducing costs.
Those factors more than offset the adverse effect of the continuing appreciation of the yen, Yokohama Rubber said.
Operating income for the firm's tire operations quadrupled to $212.6 million on a 6.8-percent increase in sales to $2.66 billion.
Sales in the Japanese OE market increased solidly in step with increased vehicle production, Yokohama Rubber said, and replacement demand was robust as well.
Yokohama's sales in overseas tire markets declined, reflecting softening demand in North America, China and European nations other than Russia. Sales declined despite progress in securing market acceptance for price increases, Yokohama Rubber said.
Based on the first half results, Yokohama said it is raising its forecast for operating income and net income 22.5 and 20 percent, respectively, to about $615 million and $375 million. Sales should rise slightly above the earlier forecast to about $7.25 billion.