TOKYO—Yokohama Rubber Co. Ltd. reported a 1 percent increase in operating income for the quarter that ended March 31 to $99.3 million, a record for the first quarter.
Sales fell 0.9 percent to $1.16 billion, and net income dropped 10.1 percent to $48.9 million.
Yokohama attributed the operating income performance to a downward trend in raw materials prices and a weakening yen. Lower revenues in Japan offset sales gains overseas, YRC said.
In the tire segment, operating income increased 0.5 percent to $78.1 million on a 1.1 percent decline in sales to $908 million. Sales of original equipment tires declined in Japan amid declining unit production of vehicles, YRC said, while Japanese replacement market sales declined in yen value and in unit volume.
YRC's overseas tire business expanded overall in yen value and in unit volume as strong sales in China and in Russia “more than offset” weakness in North America and in Europe, the Tokyo-based tire maker said.
The company is adhering to its full-year sales and earnings projections announced in February: an 8.4 percent increase in operating income but an 11 percent drop in net income and a 7.6 percent increase in sales.