Yokohama Rubber Co. Ltd. reported net income of 9.3 billion yen on record net sales of 149.2 billion yen for its first quarter ended March 31, 2018. That compares to income of 7.9 billion yen on sales of 145.8 billion yen for 2017’s first quarter.
Based on the exchange rate on March 31, 2018, Yokohama recorded net income of $88 million on net sales of $1.4 billion for the first quarter. The company’s income-to-sales ratio was 6.3%.
The company said sales revenue increased 2.3%, to 149.2 billion yen, its highest sales total ever. First quarter net income rose 18.0%. Operating income rose 8.3% to 11.7 billion yen.
In Yokohama’s tire segment, sales revenue increased overall, from 103.2 billion yen to 104.2 billion yen, led by strength in the original equipment business in China and in other Asian markets outside Japan.
Sales revenue declined overseas in replacement tires. Yokohama attributed the year-over-year decline to surges in sales in some overseas markets in the first quarter of 2017 in advance of impending price increases.
The company did not break out its original equipment or replacement tire sales in North America or other geographic regions.
Japanese business in replacement tires benefited from strong growth in sales of winter tires in Japan, according to the company. Yokohama said the growth reflected a stimulus to demand from heavy winter snowfalls and an excellent market reception for the newly launched IceGuard 6 studless snow tire.
In the ATG 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 stated it has adopted the International Financial Reporting Standards (IFRS) as of the issuance of its Yukashoken hokokusho (“Yuho,” securities report) for 2017. The IFRS presentation is in place of that formerly employed by the company based on accounting principles generally accepted in Japan. In addition, Yokohama restated its fiscal results for 2017 on an IFRS basis to facilitate meaningful year-on-year comparisons.