Yokohama revises projections a third time
Yokohama Rubber Co. Ltd. says its losses in the fiscal year ended March 31, 2009, will be smaller than the projections announced on March 24, 2009 (see "Yokohama lowers projections a second time," March 24, on www.moderntiredealer.com).
The company's management now projects the following:
* a consolidated net loss of 5.5 billion yen, down from a consolidated net profit of 21.1 billion yen in the previous fiscal year;
* consolidated net sales of 517.0 billion, down 6.2% from the previous year; and
* consolidated operating income of 13 billion yen, down 60.7% from the previous year.
Here's how the revised numbers compare to the March 24 projections: , operating income is up 13.0%, and the net loss is 31.3% less. Projected net sales are down only 0.6%.
"Yokohama attributes the upward revision in its earnings projections to better-than-expected progress in reducing selling expenses and to smaller-than-expected losses on foreign currency denominated assets," says the company.
"The smaller losses on foreign currency denominated assets are attributable to the weaker-than-expected yen at fiscal year end. In preparing the earlier fiscal projections, management had assumed fiscal year-end exchange rates of 100 yen to the U.S. dollar, compared with 114 yen to the U.S. dollar at the previous fiscal year-end, and 143 yen to the euro, compared with 162 yen to the euro at the previous fiscal year-end. The actual exchange rates at fiscal year-end were 101 yen to the U.S. dollar and 144 yen to the euro."