Tokyo—The Yokohama Rubber Co., Ltd., today announced that its consolidated net sales increased 3.1 percent over the preceding year and reached 399.824 billion yen in fiscal year 2002 ended at the end of March 2002. It is the first increase in sales on a year-to-year basis in these four years since 1998. Operating income jumped 14.4 percent to 22.701 billion yen during the same period. Net income for fiscal 2001 was only 100 million yen due to one-time amortization of goodwill at a consolidated subsidiary in the United States. For fiscal 2002, however, net income greatly increased to 7.363 billion yen thanks to the absence of such a special charge.

Sales of the Tire Group were 284.253 billion yen, a 5.0 percent increase over the previous year, and its operating income increased 35.9 percent to 15.576 billion yen. In the Japanese market, sales of original equipment tires were affected by the big reduction in production of small-size passenger cars as well as trucks and declined in terms of both volume and value from last year's levels. In contrast, replacement tire sales increased in both volume and value in yearly comparison, led by strong sales of new models with excellent environment-friendly functions and winter tires. In export, greatly increased sales were achieved in both volume and value as a result of the launch of new passenger car tires and through intensive marketing efforts in each country. Weaker yen also helped strong export sales

The Multiple Business (MB) Group sales decreased 1.4 percent to 115.571 billion yen from the preceding year and its operating income decreased 12.7 percent to 7.304 billion yen. Sales increases in antiseismic rubber bearings for bridges, conveyer belts and sealing materials were more than offset by sluggish sales of hydraulic hoses. Export sales of marine fenders and hoses, and conveyer belts were favorable. Sales of golf products were kept at low levels because of stagnant market conditions in overall. Demand for our aircraft components was strong from private airways.

For fiscal year 2003 ending March 2003, the company expects net sales of 405 billion yen, a 1.3 percent increase from the preceding year, and net income of 8.5 billion yen, a 15.4 percent increase.