Yokohama Reports Increased Earnings

The Yokohama Rubber Co Ltd posted a 10.7 per cent increase in operating income, to 4.8 billion yen, in the interim fiscal period ended 30 September. The increase is attributed to a 6.1 per cent increase in net sales, to 201.3 billion yen. Furthermore the company reports that growth in unit sales of tyres and progress in reducing costs more than offset increases in raw-material costs. Leading the sales growth were gains in Yokohama’s tyre operations in North America and in Europe. The company also registered growth in sales of tires in Japan. A decline in income taxes was the chief reason for a 12.6 billion yen increase in net income, to 13.4 billion yen.

By business segment, operating income increased 5.7 per cent in Yokohama’s Tire Group, to 3.7 billion yen, on a 7.6 per cent increase in sales, to 145.7 billion yen. Management projects that operating income in the year to 31 March 2006, will increase 9.8 per cent over the previous year, to 23 billion yen, on an increase of 6.5 per cent in net sales, to 447 billion yen. Their projections call for net income to increase 85.5 per cent, to 21 billion yen. Executives have also proposed raising the year-end dividend 2 yen, to 6 yen. That is in addition to the interim dividend announced today, which remained at 4 yen.