Yokohama Revises Annual Projections

Yokohama Rubber announced on April 25 that its projections for consolidated net sales and operating income for the fiscal year between April 1, 2007 and March 31, 2008 have been projected upwards. The new projections call for net sales to increase 10.6 per cent over the previous year, to 550 billion yen (£2.65 billion), and for operating income to increase 56.6 per cent to 33 billion yen (£159.22 million). The company also announced a downward revision in its projection for growth in consolidated earnings, with net income now projected to rise 28.3 per cent to 21 billion yen (£101.32 million).

Yokohama’s revised projection for net sales is 1.9 per cent higher than the projection announced on November 9, when the company released its interim fiscal results, and the projection for operating income is 3.1 per cent higher than that projected earlier. Yokohama’s revised projection for net income is 7.9 per cent lower than the earlier projection.

The factors behind the upward revisions in projected sales and operating income were stronger-than-expected sales growth in markets outside Japan. The downward revision in projected net income reflects the strengthening of the yen, which diminished the yen-denominated value of foreign-currency receivables. It also reflects valuation losses on investment securities.