9-month Earnings Up at Yokohama

Yokohama Rubber Co., Ltd., has posted a 19.1 per cent increase in operating income, to 20.9 billion yen (£141.5 million), in the nine month period ended 31 December. Sales growth, cost-cutting measures, and the weakening of the yen against the dollar reportedly “more than offset increased raw-material costs.”

Operating income increased 7.2 per cent in Yokohama’s Tire Group, to 18.4 billion yen, on a 10.0 per cent increase in sales, to 248.5 billion yen. According to the company sales gains at the company’s North American and European operations supported the increased operating profit. The company also registered sales gains in the Japanese tyre market due to better winter tyre sales.

The management now projects that operating income in the fiscal 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 approximately double, to 21 billion yen.