Yokohama Rubber’s net income up 74%

LSRUNQI

Yokohama Rubber’s net income up 74%
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- b: q. h2 A# g; R% r, Z5 o7 V0 ?9 tMonday, August 15, 2011
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+ K# R; R# k: C/ Q# u& C& lTokyo - Yokohama Rubber announced that its net income in the first quarter increased 74.3% over the same period of the previous fiscal year, to 2.8 billion yen. That result is for the three months from April to June, the first quarter of what will be a nine-month fiscal term (April 1 to December 31, 2011). The irregular fiscal term is on account of a change in Yokohama’s fiscal accounting to a calendar-year basis, from the previous April-to-March basis. Driving Yokohama’s resurgent profitability was a 10.2% increase in net sales, to 129.4 billion yen. That increase resulted mainly from strong sales of tires in Japan and overseas. Operating income declined 29.9%, to 4.1 billion yen. Unit sales growth and progress in reducing costs were sufficient to offset the adverse effect on earnings of the appreciation of the yen and increased selling expenses, but price increases for Yokohama products were insufficient to fully offset the effect of rising prices for raw materials. The yen appreciated less sharply, however, than in the same period of the previous fiscal year, and currency translation losses therefore narrowed greatly. Income before income taxes and minority interests increased 28.5%, to 4.0 billion yen. Sales in Yokohama’s tire operations increased 12.1%, to 103.8 billion yen, and operating income declined 30.1%, to 3.7 billion yen. Yokohama posted sales growth of 4.4%, to 19.8 billion yen, in industrial products, which consist mainly of high-pressure hoses, sealants and adhesives, conveyor belts, anti-seismic products, marine hoses, and marine fenders. The company posted a 114 million yen operating loss in this segment, compared with operating income of 349 million yen in the same period of the previous fiscal year. In the second quarter of 2011, the company generated a profit of $225 million as compared to a profit of $46 million for the second quarter of 2010. For the six months ended June 30, 2011, it generated profit of $388 million compared to profit of $142 million for the six months ended June 30, 2010.