Yokohama record first half sales and operating income

The Yokohama Rubber Co., Ltd. January to June 2015 financial results were the highest first-half results in the firm’s history. Net sales increased 4.4 per cent, to 296.3 billion yen (£1.522 billion; 2.146 billion euros; US$2.374 billion); operating income increased 7.3 per cent, to 25.3 billion yen (£129.966 million; 183.141 million euros; $202.702 million); and net income declined 9.6 per cent, to 16.2 billion yen (£82.253 million; 117.255 million euros; $129.668 million).

According to the company, Yokohama’s tyre segment led the gains (especially sales outside Japan). This was helped by growth in the company’s Multiple Business segment and in anti-seismic products amongst other product lines. Earnings are said to have benefited from generally low prices for raw materials and from the weakening of the yen.

Tyre segment, operating income increased 4.5 per cent, to 19.3 billion yen (£19.3 million; 21.345 million euros; $154.481 million), on a 4.4 per cent increase in sales, to 231.7 billion yen. Yokohama reports strong growth in Europe, Russia and in China, though it posted weak results in North America.

In Japan, the company’s original equipment business declined on account of a continuing downturn in Japanese vehicle production. Yokohama registered declines in yen value and in unit volume, meanwhile, in the Japanese replacement market. Those declines reportedly reflected the adverse effect of the April 2014 hike in Japan’s national sales tax; and escalating price competition.

Following the results, Yokohama raised its full-year net income projection by 3 billion yen, to 39.0 billion yen. In addition management decided to pay an interim dividend of 13 yen per share in view of the company’s fiscal performance.