Yokohama Rubber announces record earnings

Talk at Yokohama Rubber is of record earnings for the first nine months of a fiscal year. The company reports that between the start of January and the end of September 2021, profit attributable to owners of parent increased approximately tenfold year-on-year, to 43.5 billion yen (£284.9 million). Operating profit was up sevenfold, to 59.3 billion yen (£388.4 million) and business profit (sales revenue less the sum of cost of sales and selling, general and administrative expenses) rose approximately fourfold, to 37.1 billion yen (£243.0 million). Sales revenue was up 22.3 per cent, to 460.5 billion yen (£3.0 billion).

Yokohama’s latest figures for profit attributable to owners of parent, operating profit and business profit are its highest ever for the first nine months of a fiscal year. Additionally, the third-quarter figure for sales revenue exceeded that for the same period in pre-covid 2019, which at the time was the company’s highest ever for that period.

Tires & ATG

Sales revenue and business profit within Yokohama’s Tires segment were up year-on-year. Revenues for original equipment tyres increased despite the semiconductor shortage affecting global vehicle production.

Revenue also increased in the replacement tyre segment: Yokohama Rubber says it promoted high-value-added products effectively, expanded production to meet robust demand, and took swift measures to cope with the container shortage and shipping delays in international logistics. The company thereby succeeded in achieving sales gains in replacement tyres in North America, in Europe, and in India and other Asian markets, excluding Japan.

Record levels were also reached for sales revenue and business profit in Yokohama’s off-highway ATG segment, The company says the strong performance here reflected sales gains in all of ATG’s principal product categories.

Full-year projections

Yokohama has upwardly revised the full-year fiscal projections for 2021 sales and earnings that it announced in August. These revised projections call for profit attributable to owners of parent to total 58.0 billion yen (£379.9 million), up 0.9 per cent over the earlier projection, on operating profit of 74.5 billion yen (£487.9 million), up 1.4 per cent; business profit of 52.5 billion yen (£343.8 million), up 1.9 per cent; and sales revenue of 655.0 billion yen (£4.3 billion), the same amount as in the earlier projection.

Further information about Yokohama Rubber’s financial performance is available here