Yokohama posts first half sales increase, income drop
Based on the exchange rate on Sept. 30, Yokohama recorded income of $5.2 million on sales of $2.4 billion for the first half. Its income-to-sales ratio was 0.2%.
In addition to the 95.7% drop in net income from the same period the previous year, Yokohama also suffered a 53.7% decline in operating income, from 12.1 billion yen to 5.6 billion yen.
The company lists four conditions that affected operating profitability: the continuing upward trend in raw material prices; the appreciation of the yen; increases in logistics costs and other selling expenses; and the partial relinquishment of a tax benefit associated with the write-down of unrealized gains or inventories.
Yokohama posted a 2.7% increase in tire sales over the same period of the previous year -- from 188.7 billion yen to 193.8 billion yen. It credited the following for contributing to the sales increase:
* increased sales to Japanese automakers;
* business gains in Russia, China and the Middle East;
* price increases.
Operating income of Yokohama's Tire Group declined 64.6% to 3.2 billion yen.