Yokohama Rubber Co. Ltd. reported net income of 17.8 billion yen on net sales of 309.7 billion yen for the half year ended June 30, 2018. That compares to income of 15.0 billion yen on sales of 304.2 billion yen for the first half of 2016.
Based on the exchange rate on June 30, 2018, Yokohama recorded net income of $160.3. million on net sales of $2.8 billion for the first half of the year. The company’s income-to-sales ratio was 5.7%.
Net income was up 19.1% compared to the first half of 2017. The company said its half-year revenue of $309.7 billion yen is up 1.8% over the year-ago period, and its operating profit of 26.4 billion yen is 32.3% higher than operating profit in the first-half of 2017. Yokohama says its operating profit and sales revenue in 2018’s first half are its highest ever.
Yokohama has adopted the International Financial Reporting Standards (IFRS) since fiscal 2017 year-end.
In Yokohama’s Tires segment, sales revenue increased in the original equipment sector. The company says promoting high-value-added products worldwide offset the unit sales decline that resulted from a decline in unit vehicle production in Japan.
Sales revenue declined in the tire replacement sector. The decline reflected a sales surge overseas in the same period of the previous year in advance of price hikes and the negative rebound from that surge. That rebound offset the positive sales contributions in Japan from strong sales of winter tires, stimulated by heavy snowfalls, and from effective promotion of high-value-added products. The high-value-added products include tires marketed under Yokohama’s global flagship brand, Advan, and fuel-saving tires in the BluEarth series.
In the ATG (Alliance Tire Group) segment, sales revenue increased on the strength of gains in original equipment business. This segment comprises business in tires for agricultural machinery, for industrial machinery, and for other off-highway applications, and the increase in sales revenue reflected a recovery in demand for agricultural machinery.
Yokohama management abides by the full-year fiscal projections for 2018 that it announced in February. Those projections call for profit attributable to owners of parent to total 40.0 billion yen on operating profit of 60.0 billion yen, business profit of 63.0 billion yen, and sales revenue of 670.0 billion yen.