Strong sales drive Yokohama's record revenue, earnings for 2022

HIRATSUKA, Japan—Yokohama Rubber Co. Ltd. has reported record revenue and earnings for 2022, driven by strong sales within its high-value-added car tire segment as well as "vigorous business" in off-road tires.

Sales increased 28.3 percent over the previous year, to $6.5 billion, while business profit increased 12.8 percent, to $534 million, the group announced Feb. 17.

Yokohama linked the "record-high figures" to "a successful summer campaign" for Advan-brand high-value-added products and a strong performance in agricultural tire and other off-highway tire markets.

In addition, the Japan-based group said the figures reflected improvements in its product-mix and price increases, both in Japan and overseas markets.

While the positive factors resulted in notably strong sales gains in North America, sales and earnings also benefited from the weakening of the yen during the year.

Business profit within the group's Tires segment for passenger cars and light trucks increased 17 percent year-on-year to $510 million, on 23-percent higher sales of $5.7 billion.

OE tire sales increased as car makers began to increase production volume, the tire manufacturer said, noting new fitment wins in North America.

A weaker yen also positively impacted sales, offsetting "continuing constraints" on vehicle production and the adverse effects of the COVID-related lockdowns in China.

Yokohama also posted sales growth in the replacement tires segment, helped by heavy snowfalls in Japan in early 2022.

Furthermore, the group posted record-high sales revenue and business profit in its Yokohama Off-Highway Tires unit, which includes the acquired ATG (Alliance Tire Group) business.

The unit reported a 50-percent increase in business profits to about $168 million, on 45-percent higher sales of $1.2 billion.

That performance, Yokohama said, reflected success in the cost-competitiveness of the unit's India-produced tires in North American and other sales channels and securing price increases for its products.

Yokohama's Industrial Rubber Products unit also reported growth, with business profit increasing 5 percent year-on-year to $29.7 million, on 14-percent higher sales of $731 million.

Business in high-pressure hoses expanded during 2022, supported by a recovery in vehicle production in North America and by "resilient Japanese demand" for hydraulic hoses for construction equipment.

Sales also increased in industrial materials, as Yokohama posted robust growth in Japanese business in conveyor belts. Demand also rose for replacement fixtures and components in the commercial aircraft sector.