Yokohama Rubber Co. Ltd. expects to see a “stronger than expected recovery” and is revising its full-year sales and income projections as a result.
During the first three months of 2020, Yokohama experienced a 74.5% decline in operating profit and a 16.2% drop in sales revenue.
The Tokyo, Japan-based company also reports that sales and “business profit” in its tire segment declined from the same period last year.
“In original equipment tires, sales revenue declined on account of a sharp decline in demand during the first two quarters,” say Yokohama officials.
“That decline offset a modest recovery in Japanese demand, following a fiscal first half downturn caused by the COVID-19 pandemic and a recovery in demand in China and elsewhere.”
Overall, the drops that Yokohama experienced during the first three quarters of 2020 “reflected the first half impact of the COVID-19 pandemic on demand,” but “masked a sales upturn” in replacement tires.
