Yokohama lowers full-year earnings projections
Higher-then-anticipated raw material price increases have prompted Yokohama Rubber Co. Ltd. to lower its full-year earnings projections.
The projections were originally announced three months ago.
"Management now expects operating income to decline 27.1% in fiscal 2007 to 16 billion yen," say Yokohama officials. (Yokohama's 2007 fiscal year runs from April 1, 2006, to March 31, 2007.)
"Net income benefited in fiscal 2006 from a tax benefit associated with earlier write-downs of equity in a U.S. subsidiary. Absent that benefit, management expects net income to decline 67.4% to 7 billion yen, compared with earlier projection of a 33.3% decline to 10.5 billion yen."
However, Yokohama officials are sticking by their earlier projection of a 7.3% increase in net sales to 485 billion yen.