Sales Down, Income Up at Yokohama Rubber
The short-lived dip in raw material costs the industry experienced in 2009 helped Yokohama Rubber towards a better bottom line result in the recently concluded financial year. The company has announced net earnings of 11.5 billion yen (₤83.5 million) for the fiscal year ended March 31, 2010. This gain compares with a net loss of 5.7 billion yen in the previous fiscal year and reflects a surge in operating profitability. Operating income rose 67.5 per cent, to 21.5 billion yen (£156.1), on a 9.8 per cent decline in net sales, to 466.4 billion yen (₤3.4 billion). Underlying Yokohama’s surge in operating income were the abovementioned reversal of the upward trend in raw material costs and the company’s progress in reducing selling expenses and other costs. Net profitability benefited additionally, meanwhile, from a sharp reduction in losses on currency translation adjustments.