Yokohama Improve Results Prediction

Yokohama Rubber Co., Ltd. has revised its consolidated and non-consolidated forecasts for the first half of fiscal 2007 (1 April 2006 to September 30 2006). The current revised consolidated forecast includes 222 billion yen for net sales (just under £1 billion), a 0.9 per cent increase over the previous forecast, 3 billion yen for ordinary profit, a 172.7 per cent increase compared to same, and 3.3 billion yen (£14.75 million) for net income, a 450 per cent increase.

Although affected by increases in prices of raw materials, mainly natural rubber, the forecast for ordinary profit exceeds the previous one, reflecting improved cost reduction, profits from consolidated affiliates in North America, and a weaker-than-expected foreign exchange rate of yen. The current revised forecast for net income is attributable to an increase in extraordinary gain as a result of sale of some investment securities held by the company, in addition to the increased ordinary profit. “We will publicize our consolidated and non-consolidated forecasts for the entire fiscal year at the time of announcing the results for the first half of this fiscal year,” an official statement said.