TOKYO—Buoyed by the impact of higher selling prices and increased sales volumes, Yokohama Rubber Co. Ltd. (YRC) posted double-digit gains in operating income and sales for the three-month period ended Sept. 30.
The company reported 72.2-percent increased operating profit for the period of $133.2 million on 43.2-percent higher sales of $1.62 billion, yielding an operating ratio of 8.2 percent, up 1.4 points over the year-ago period. YRC cited the positive effects of an improved price/mix component, higher sales volumes and exchange-rate differences for the earnings gains.
Despite the positive gains in the quarter, Yokohama Rubber did not change the full-year fiscal 2022 projections it announced in August, which call for sales revenue of about $6.8 billion and an operating ratio of 7 percent. The profit projection comes up nearly 28-percent short of the fiscal 2021 results, despite 27.5-percent projected higher sales.
YRC posted double-digit sales gains in the third quarter in all of its business segments, led by a 77-percent jump in tire unit sales, to $1.44 billion. The tire business unit now includes the results of Yokohama's Off-Highway Tire unit, which previously were reported separately.
YRC noted that sales in North America were up 8 percent in the quarter and 4 percent for the January-September period. Business in Asia, including China, and Japan was up over 20 percent.
Business in Russia was just 60 percent of its level a year ago. YRC resumed production at its tire plant in Lipetsk, Russia, in September after it had been suspended for several months following Russia's invasion of Ukraine and subsequent raw-materials supply problems.
For the nine-month period ended Sept. 30, YRC reported a 23.6-percent drop in operating income, to $354.1 million, on 33.7-percent higher sales of $4.46 billion. Net earnings fell 23.5 percent to $260 million.
Yokohama said it has struggled with the adverse effects of rising raw material costs and logistics expenses, reduced vehicle production necessitated by the shortage of semiconductor devices and COVID-19 lockdowns in China.
It overcame those challenges, it said, thanks to increased tire sales in Japan and overseas, including off-highway tires for agricultural machinery and industrial machinery, plus the financial contribution from the depreciation of the yen.