Yokohama projects fewer sales, less loss

Yokohama Rubber Co. Ltd. has reduced its net-loss projection for the first six months of fiscal 2010 from 8 billion yen to 5 billion yen.

The company will release its first-half financial results on Oct. 30. Its 2010 fiscal year started on April 1, 2009. The company posted net income of 554 million yen in the first half of the previous fiscal year.

"Underlying the improved earnings outlook are Yokohama's progress in cutting costs and the weaker-than-expected yen," says the company. "The cost cutting appears likely to prevent a worsening of the operating loss despite lower-than-expected sales.

"Undercutting sales has been the worse-than-expected slump in global demand."

Yokohama also has readjusted its first-half sales projection down (its original projections were announced on May 12, 2009). It now projects net sales will decline 22.1% from the same period of the previous year, to 200 billion yen. The sales figure is 9.1% lower than the earlier projection.

Yokohama's projected operating loss of 3 billion yen remains the same. The company posted operating income of 5.6 billion yen in the same period of the previous fiscal year.