January-September sales and earnings at record levels – Yokohama

Yokohama Rubber reports record sales and earnings in the first three quarters of 2013. Net sales increased 4.9 per cent over the same period of the previous year to 412.4 billion yen (£2.6 billion), operating income increased 13.8 per cent to 29.9 billion yen (£188.3 million) and net income increased 12.3 per cent to 19.6 billion yen (£123.5 million). The three totals were the highest ever in the nine-month period between January and September, although the company does point out that prior to shifting to calendar-year accounting in 2011 the same nine-month period corresponded to the fourth, first, and second quarters of the financial year.

Net sales in the third quarter increased 15.0 per cent to 142.7 billion yen (£899.0 million), operating income was up 61.9 per cent to 10.9 billion yen (£68.7 million) and net income jumped 77.1 per cent to 6.6 billion yen (£41.6 million).

For the full year, Yokohama abides by the projections that it announced in August: net sales of 610 billion yen (£3.8 billion), up 9.0 per cent, operating income of 59 billion yen (£371.6 million), up 18.7 per cent, and net income of 36 billion yen (£226.7 million), up 10.4 per cent. The company has announced that the annual dividend will total 22 yen (£0.14) per share: an interim dividend of 10 yen and a year-end dividend of 12 yen.

Yokohama’s nine-month sales in tyre operations increased 4.9 per cent over the same period of the previous year to 323.3 billion yen (£2.0 billion), and operating income increased 1.8 per cent to 22.0 billion yen (£138.6 million). Overseas, Yokohama’s sales declined in Russia but the company’s unit sales recovered in North America and China. Japanese sales of original equipment tyres slackened, reflecting the end of government incentives for purchases of fuel-efficient vehicles and Japanese auto manufacturers’ ongoing shift of production overseas. Yokohama maintained its unit sales volume in Japan’s replacement tyre market, but a market shift toward lower-priced tyres and escalating price competition diminished the yen value of sales.

In Yokohama’s industrial products operations, nine-month sales increased 4.2 per cent over the same period of the previous year, to 70.4 billion yen (443.4 million), and operating income increased 55.2 per cent to 5.4 billion yen (£34.0 million). Those operations consist mainly of high-pressure hoses, sealants and adhesives, conveyor belts, anti-seismic products, marine hoses, and marine fenders. Contributing to the business expansion were strong growth in automotive hoses in North America and Southeast Asia and gains in marine fenders, in marine hoses, and in conveyor belts.

Yokohama’s nine-month sales in other products increased 8.2 per cent over the same period of the previous year, to 18.7 billion yen (£117.8 million), and operating income increased 108 per cent, to 2.5 billion yen (£15.7 million). That business consists mainly of aircraft fixtures and components and golf equipment. In aircraft fixtures and components, sales were strong in lavatory modules for commercial aircraft. Business declined overall in golf equipment, as weak sales of Yokohama’s iD nabla golf clubs offset strong sales of its egg golf clubs.