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.