Yokohama forecasts sales of 222 billion yen for first half
Yokohama Rubber Co. Ltd. has revised its consolidated and non-consolidated forecasts for the first half of fiscal 2007, ended Sept. 30.
The current revised consolidated forecast includes the following comparative financial estimates, based on yen:
* net sales of 222 billion yen ($1.86 billion), a 0.9% increase over the previous forecast;
* 3 billion yen ($25 million) for ordinary profit, a 172.7% increase; and
* 3.3 billion yen ($27.6 million) for net income, a 450% increase.
The original forecast was publicized on May 11, 2006. The revisions were necessary based on Yokohama's recent performance trends.
Although affected by increases in prices of raw materials -- mainly natural rubber -- the forecast for ordinary profit exceeds the previous one, reflecting improved cost reduction, profits from consolidated affiliates in North America, and a weaker-than-expected foreign exchange rate of yen.
The current revised forecast for net income is attributable to an increase in extraordinary gain as a result of the sale of some investment securities held by the company, in addition to the increased ordinary profit.
Yokohama will publicize its consolidated and non-consolidated forecasts for the entire fiscal year following its first-half financial results.