Yokohama reports ‘weak results’ in North America
Yokohama Rubber Co. Ltd. reported net income of 16.2 billion yen on net sales of 296.3 billion yen for its first half ended June 30, 2015. That compares to income of 17.9 billion yen on sales of 283.9 billion yen for the same period last year.
Based on the exchange rate on June 30, 2015, Yokohama posted income of $132.3 million on sales of $2.4 billion for the first half of 2015. Its income-to-sales ratio was 5.5%.
Yokohama said sales benefited from “solid gains” in its tire segment in overseas markets and from gains in the company’s multiple business segment in industrial materials, led by growth in marine hoses, and in antiseismic products, and in aircraft fixtures and components. Year over year, net sales and operating income are up 4.4% and 7.3%, respectively. Net income is down 9.6%.
The company says its net sales and operating income are its highest first-ever results ever.
In Yokohama’s tire operations, operating income increased 4.5% over the same period in 2014, to 19.3 billion yen. Sales were up 4.4% to 231.7 billion yen.
Robust business in overseas markets drove gains in sales and earnings. Yokohama says it posted strong growth in Europe, in Russia, and in China and weak results in North America.
In Japan, the company’s original equipment business declined due to a continuing downturn in Japanese vehicle production.
In the Japanese replacement market, the company reported declines in yen value and in unit volume. The declines reflected:
* the adverse effect of the April 2014 hike in Japan’s national sales tax;
* lighter-than-usual snowfall in the Tokyo region, which diminished demand for studless snow tires; and *escalating price competition.
Yokohama raised its full-year projection for net income by 3.0 billion yen, to 39.0 billion. That is on account of an improvement in non-operating results, principally currency translation adjustments.
For information on Yokohama's fiscal 2014 results, see "Yokohama sets financial records in 2014."