Retail

Yokohama increases net income and sales in 1H

Posted on August 10, 2014

Yokohama Rubber Co. Ltd. posted net income of 18 billion yen on net sales of 283.9 billion yen for the first half ended June 30, 2014. That compares to income of 13 billion yen on sales of 269.7 billion yen for the same period last year.

Based on the exchange rate on June 30, 2014, Yokohama recorded income of $177.5 million on sales of $2.8 billion for 1H 2014. Its income-to-sales ratio was 6.3%.

The company's operating income rose more than 23%, from 19.1 billion to 23.6 billion yen.

"Underlying the robust fiscal performance were business gains in tires, in industrial products and in other products," according to the company. "Yokohama achieved strong sales growth in tires in Japan and in overseas markets."

Earnings in each segment benefited from both a downward trend in raw material prices and the weakening of the yen.

In Yokohama's tire operations, operating income increased 33.4% over the same period in 2013, to 18.5 billion yen, while sales were up 5.7%, to 221.9 billion yen.

Yokohama posted vigorous growth in original equipment business in Japan. Driving that growth were

1. a surge in demand in advance of the April 1 hike in Japan’s national sales tax;

2. increased shipments of tires for fuel-saving vehicle models; and

3. success in winning fitments on additional vehicle models.

Yokohama’s replacement tire business in Japan also expanded vigorously, with help from the surging demand in advance of the national sales tax hike and sales of studless winter tires due to heavy snowfalls.

Overseas, recovery in North America, Europe and China more than offset continuing weak demand in Russia and in some other markets.

Yokohama revised is full-year sales projection downward, from 647 billion yen to 635 billion yen. That estimate is still a 5.5% increase over the previous year. Its projection for net income was increased, from 37.5 billion yen to 42 billion yen.

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

Comments ( 0 )
More Stories
John Van Heel says the pressure from online sales channels benefits bigger players, and ultimately helps Monro's acquisition strategy.
News

Online Tire Sales Don’t Scare Monro

“It’s nice to be wanted, but it’s even nicer to be needed.” In a nutshell, that’s Monro Muffler Brake Inc.’s philosophy when it comes to online tire sales.  

News

Brake Jobs Help Monro's Existing Stores Boost Sales

The fact that overall sales at Monro Muffler Brake Inc. increased in the first quarter of fiscal 2018 is hardly news. The company's aggressive approach to acquisitions helps it continually add to the sales column. But in the latest quarter, Monro's existing, comparable stores helped the bottom line, too. And that's news.  

News

Nexen Explores Partnership Options With an Investment Company

  Nexen Tire Corp. has signed a memorandum of understanding "to explore strategic partnership opportunities" with Mubadala Investment Co. The strategic investment fund has made a direct investment in the tire maker as part of the agreement.  

Zixin Liu, market planning director for Wanli Tire Corp., spoke at the 2017 Shanghai International Auto Show.
Article

Who Is Wanli? Industry Analyst Breaks Down the Chinese Company

Following leaks from South Carolina in early June that Orangeburg County is expecting an investment of $1 billion from a Chinese company named “Wanli,” many in the tire industry wanted to know more details. Chief among them was the question, “Who on earth is Wanli?”

News

DSP Hires Bridgestone Veteran George Kingman

Dealer Strategic Planning Inc. (DSP) has hired George Kingman as the 20 Group’s associate director. Kingman brings extensive experience in sales and store management, productivity improvement and team building to DSP.

After 10 years in operation, DSP has updated its look.
News

DSP Unveils a New Logo

Dealer Strategic Planning Inc. (DSP) has unveiled a new logo for the company. The fresh, storefront design symbolizes the enhanced services DSP is offering to its 20 Group members.

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!