Yokohama posts 1Q net income increase of 59.3%
Yokohama Rubber Co. Ltd. posted net income of 986 million yen on net sales of 91 billion yen for the first quarter ended June 30, 2004. Compared to the same period last year, income was up 59.3% (from 619 million yen) and sales were up 7.5% (from 84.7 billion yen).
If the exchange rate on June 30 is taken into account, Yokohama recorded net income of $9.06 million on net sales of $836 million for the first quarter.
Operating income also was up -- 11.8% from the first quarter of 2003 (2.94 billion yen) to the first quarter of 2004 (3.29 billion yen). Ordinary income rose 34.5% to 2.8 billion yen.
Yokohama broke down its consolidated financial results for its divisions as follows:
* Tire Group: Sales and operating income increased 8.6% and 34.2%, respectively, in the first quarter vs. the same period in 2003. Yokohama posted sales of 66.5 billion yen and operating income of 3.3 billion yen.
In Japan, sales of replacement tires grew steadily, according to the company. In the overseas market, tire group sales "were favorable mainly in Europe, Asia and North America."
* Multiple Business Group: Despite sales of 24.6 billion yen -- a comparative increase of 4.7% -- operating income declined 97.9% to 10 million yen. Yokohama says high-pressure hoses and automotive sealing materials performed well, but that sales of golf products suffered "stagnant domestic demand."
Yokohama Rubber officials say they expect the following results for the first half of the company´s fiscal year ending September 30, 2004:
* sales to increase 2.2% from the same period in the preceding year (to 186 billion yen);
* net income to decline 66.4% to 500 million yen; and
* ordinary income to decline 26.8% to two billion yen.