Yokohama Revises Earning Projections

The Yokohama Rubber Co., Ltd., has upwardly revised its projections for consolidated earnings in the interim fiscal period from April 1 to September 30, 2007. These new projections, announced on October 26, call for the interim operating income to increase 3.5-fold over the same period of the previous year, to 11.5 billion yen (£49.1 million), and for interim net income to increase 3.7-fold, to 12.5 billion yen (£53.4 million). Yokohama’s revised projection for operating income is 27.8 per cent higher than the projection announced on August 9, and the revised projection for net income is 66.7 per cent higher. The company’s projection of a 13.3 per cent increase in net sales, to 252.0 billion yen (£1.08 billion), is unchanged from the earlier projection.

Occasioning the upward revision in projected profitability were stronger-than-expected sales growth in markets outside Japan, improvements in the structure of earnings in Yokohama’s North American tyre operations, and the weaker-than-expected yen. The upward revision in projected net income reflects a larger-than-expected tax benefit realised in connection with the improved profitability in Yokohama’s North American tyre operations. Yokohama will announce updated projections for full-year sales and earnings when it releases its interim results on November 9.