Yokohama records 'stronger-than-expected' results for 1Q
Yokohama Rubber Co. Ltd. posted net income of 3.1 billion yen on net sales of 121.6 billion yen for its first quarter ended June 30, 2007. That compares to income of 1.2 billion yen on sale of 106.8 billion yen for the same period a year ago.
(Based on the exchange rate on June 29, 2007, Yokohama earned $25.5 million on sales of $987.6 million for 1Q fiscal 2008.)
The 150.2% increase in first-quarter net income, 130.6% increase in operating income (to 4.3 billion yen) and 13.8% increase in net sales were "stronger than expected" results, according to the company. Accordingly, Yokohama has raised its interim and full-year fiscal projections.
* Net income will total 7.5 billion yen for the six months ending Sept. 30, 2007, an increase of 123.1% compared to the first half of fiscal 2007.
* Operating income will be 9 billion yen, an increase of 172.4%.
* Net sales will total 252 billion yen, an increase of 13.3%.
* Net income will total 22.8 billion yen for fiscal 2008 ended March 31, 2008, an increase of 39.3% compared to fiscal 2007.
* Operating income will come in at 32 billion yen, an increase of 51.9%.
* Net sales will total 540 billion yen, an increase of 8.6%.
Sales expanded solidly in Yokohama's Tire Group, led by growth in markets outside Japan, and in its Multiple Business (diversified products) Group.
Operating income in the Tire Group tripled in the first quarter, to 3.1 billion yen, as sales increased 15.9%, to 90.7 billion yen. Leading the sales growth were gains in North America (24.2 billion yen), Europe and Asian nations besides Japan.
The sales growth, coupled with the weakening of the yen and price hikes for Yokohama tires, more than offset the continuing upward trend in prices for natural rubber and other raw materials.