Retail

Yokohama's income and sales are up in 1Q

Posted on May 9, 2014

Yokohama Rubber Co. Ltd. posted net income of 6.5 billion yen on net sales of 139.9 billion yen for its first quarter ended March 31, 2014. That compares to income of 5.6 billon yen on sales of more than 127.6 billion yen for 1Q 2013.

Based on the exchange rate on March 31, 2014, Yokohama recorded net income of $63 million on net sales of more than $1.3 billion for the first quarter. The company's income-to-sales ratio was 4.6%.

Operating income increased 54.6%, from nearly 7.6 billion yen to 11.7 billion yen, a record for the company. Yokohama cited three factors for the increase:

1. a downward trend in raw material prices;

2. the weakening of the yen, and

3. sales growth.

Sales and earnings increased in each of Yokohama’s three business sectors: tires, industrial products and "other products." The strong performance in tires "reflected robust growth in Japan and sales growth overseas, too," said Yokohama.

In Yokohama’s tire operations, operating income increased 62.9%, to 9.3 billion yen, on a 9.4% increase in sales, to 109.5 billion yen (nearly $1.1 billion). Business expanded overall in overseas markets as tire sales recoveries in North America and in China more than offset weakness in Russia and in some other markets.

In Japan, the company’s sales of original equipment tires were strong. That increase reflected an upturn in vehicle demand in advance of the April 1 hike in the nation’s national sales tax. Yokohama also posted strong sales growth in replacement tires in Japan, a reflection of sales gains in studless tires, bolstered by heavy snowfalls, and in summer tires, stimulated by the impending hike in the national sales tax.

Yokohama projects its first-half results will compare to 1H 2013 as follows: net income will increase 4%, to 13.5 billion yen; net sales will increase 10.5%, to 298 billion yen; and operating income will increase 31.2%, to 25 billion yen.

Yokohama projects its full-year results will compare to fiscal 2013 as follows: net income will increase 7.1%, to 37.5 billion yen; net sales will increase 7.5%, to 647 billion yen; and operating income will increase 11.2%, to 63 billion yen.

Related Topics: OE tires, raw material costs, Yokohama financials

Comments ( 0 )
More Stories
News

Union Official Calls Tariff Vote 'A Huge Mistake'

The leader of the United Steelworkers union says the International Trade Commission has made "a huge mistake" in not imposing tariffs on truck and bus tires from China. And based on early feedback from Modern Tire Dealer readers, tire dealers and particularly retreaders agree.

News

Two Asian Automotive Shows in One in March

Tyrexpo Asia 2017 and the inaugural edition of GarageXpo Asia will be held in conjunction with each other March 21-23, 2017, in Singapore. The events are organized by SingEx Exhibitions Pte. Ltd.

Bobby Hendry from 31 Inc. was from one of 80-plus vendors at the Tire Factory trade show. Here he talks to Mike Fleming, equipment supply manager for the dealer group, and Marc Thompson from Point S Everett in Everett, Wash.
News

Point S Rebranding Exceeds Expectations in the U.S., and Points to More Growth

Tire Factory Inc. members have rebranded the vast majority of their 206 stores to the Point S banner at a breakneck pace. And leaders of the Oregon-based cooperative are unveiling new programs with two big hopes: the momentum of current members continues, and more independent tire dealers join their network.

News

Cooper Enjoys a Full-Year Income-to-Sales Ratio of 8.5%

Cooper Tire & Rubber Co. posted net income of $69.3 million on net sales of $783.9 million for its fourth quarter ended Dec. 31, 2016. That compares to income of $59.2 million on sales of $775.5 million for the same period in 2015.

ATV has added 6 stores to its network of American Tire Depot stores in California.
News

ATV Opens 6 American Tire Depot Stores

ATV Inc. has acquired six stores in the greater Los Angeles metro area. The purchase expands ATV's network of American Tire Depot stores to 98 outlets, all in California.

News

MATDA Joins TIA's Social Media Platform

The Mid-America Tire Dealers Association (MATDA) has joined the social media content platform developed by the Tire Industry Association (TIA) and the Automotive Marketing Foundation (AMF).

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!