TOKYO—Yokohama Rubber Co. Ltd. reported slight drops in operating and net income for fiscal 2018 on record sales of $5.91 billion.
Yokohama cited a $102 million asset impairment charge related to its Yokohama Tire Manufacturing Mississippi L.L.C. subsidiary as the key factor in its 1.4 percent drop in operating profit, to $486.3 million or 8.2 percent of sales.
YRC attributed sales gains in its multiple business and Alliance Tire (ATG) business units for a revenue increase of 0.6 percent. Tire business unit revenue, on the other hand, fell 1.1 percent to $4.13 billion on lower OE sales domestically and internationally and lower replacement in key international markets.
Revenue in the ATG segment increased 8.3 percent on the strength of gains in OE shipments, which reflected a continuing recovery in demand for agricultural machinery.
YRC is forecasting improvements in sales and earnings for the current fiscal year—sales up 1.5 percent to $6 billion and operating and net earnings up 7.5 and 12.3 percent, respectively.
The company did not provide regional breakdowns.