Yokohama Rubber Co. Ltd. posted net income of 8.8 billion yen on net sales of 135.3 billion yen for the first quarter ended March 31, 2012.
(The company shifted to calendar-year fiscal accounting as of 2012 from its previous April-to-March accounting. That resulted in a one-time-only nine-month fiscal accounting period last year.)
Based on the exchange rate on March 31, 2012, the company recorded net income of $106.9 million on net sales of more than $1.6 billion for 1Q 2012. The company's income-to-sales ratio was 6.5%.Operating income was $113 million.
The 7.4% first-quarter sales growth versus the fourth quarter of the previous fiscal year (both January-March) "reflected strong gains in sales of tires to automakers in Japan and progress in raising prices for tires and other products in Japan and overseas," says the company.
Sales and operating income in Yokohama's tire operations totaled 107.2 billion yen and 7.9 billion yen, respectively.
Original equipment sales in Japan were particularly strong, says Yokohama. "Vehicle production in Japan increased sharply as automakers recovered from the effect of the Great East Japan Earthquake of March 2011, and that occasioned strong growth in sales of tires for factory fitment."
However, replacement tire sales in Japan declined "despite stronger-than-expected growth in sales of winter tires." The company adds that price increases enabled it to post sales growth in replacement tires overseas despite weakening demand in North America and in European nations other than Russia.
Sales results In Yokohama's other business units were mixed.
* In Industrial Products, sales increased 1.3%, to 22.7 billion yen.
* In "other products" (which include aircraft fixtures and components and golf equipment), sales declined 17.2%, to 5.4 billion yen.
Yokohama projects its 2012 fiscal year net income will reach 25 billion yen and its net sales will total 575 billion yen, and income-to-sales ratio of 4.3%.