Yokohama’s Income Decreases

In its third quarter Yokohama Rubber saw net sales rise by 4.3 per cent to ¥189.7 billion. The company claims that this reflected “solid tyre sales overseas.” However, net income fell by a massive 51.6 per cent, to ¥719 million. The manufacturer claims that this was due to inventory losses and a loss on devaluation of securities investment.

Operating income also declined by 6.3 per cent to ¥4.3 billion, and has been put down to the increase in prices of natural rubber and other raw materials. Yokohama is also citing higher logistics costs stemming from increased export volume and a jump in shipping charges to the decline in income.

The company described overseas sales as strong, particularly in Europe, Asia, and the Middle East. Tire Group sales rose 6.5 per cent, to ¥135.4 billion. Operating income from this segment increased by 73.0 per cent to ¥3.5 billion, on cost-cutting and improved revenues and earnings at subsidiaries.

The management’s projections for the full year, ending 31March, 2005, are for a 4.6 per cent gain in net sales, to ¥420 billion, a 9.1 per cent rise in operating income, to ¥23 billion, and a 3.2 per cent drop in net income, to ¥10 billion.