Yokohama increases net income by 21%
The Yokohama Rubber Co. Ltd. posted net income of 13.9 billion yen on net sales of 519.7 billion yen for its fiscal 2011 ended March 31, 2011. That compares to income of 11.5 billion yen on net sales of 466.4 billion yen for its fiscal 2010.
Based on the exchange rate on March 31, 2011, Yokohama recorded net income of $167.7 million on sales of nearly $6.3 billion for fiscal 2011. It's income-to-sales ratio was 2.6%.
Operating income year to year increased 37.5%, to 29.5 billion yen.
Leading the sales growth were the following, according to Yokohama:
* tires (sales increased 12% to 411.6 billion yen),
* high-pressure hoses (the company is constructing a new plant in the economic development zone in Hangzhou City, China),
* sealants and adhesives, and
* aircraft products.
Yokohama says it reinforced its "sales momentum" through price increases in tires and other products. "Those increases helped offset the adverse effect on earnings of rising prices for raw materials and the appreciation of the yen."
Earnings also benefited from an increase in capacity-utilization rates and from progress in trimming costs. The fiscal results also reflect a charge of 1 billion yen for the effects of the Great East Japan Earthquake.
Yokohama will change its fiscal year in 2011 to a January-December period. That will result in a one-time-only nine-month fiscal period from April 1 to Dec. 31, 2011.
The company projects that for its nine-month fiscal year, it will post net income of 11 billion yen and operating income of 21 billion yen on net sales of 471 billion yen.