Tokyo— The Yokohama Rubber Co., Ltd. announced that its consolidated operating income jumped 31.6 percent to 5.8 billion yen in the first half of Fiscal 2002 (April 2001- March 2002) ended September 30, 2001, compared with the same period of the preceding year. The operating income is the highest in the company's history of first-half-year business results. Net sales increased 4.0% over the prior year, achieving growth for the first time in these 4 years as first-half-year sales. The company improved its net loss to 500 million yen from 5.5 billion yen of the first half of Fiscal 2001.

The sales and operating income growths were led by the Tire Group that recorded a 6.5 percent increase in net sales to 128 billion yen and a 330.3 percent increase in operating income to 2.4 billion yen, both over the same period of the preceding fiscal year. In the Japanese market, overall automobile production decreased from the same period of the last year. However, the company achieved increased tire sales in volume and maintained sales value at the same level as that of the first half of FY2001 by strengthening marketing efforts. Sales of replacement tires exceeded the last year's level in terms of both value and volume, driven by strong sales of highly functional tires that contribute to environmental protection through improved automotive fuel efficiency. In overseas, sales in both value and volume increased over the first half of FY2001, in particular, in Europe and Oceania. Weaker yen also helped overseas sales increase.

The Multiple Business (MB) Group sales decreased 1.2 percent to 56.5 billion yen and its operating income decreased 11.1 percent to 3.4 billion. Sales increase in antiseismic rubber bearings for bridges and sealing materials for buildings were more than offset by sluggish sales of hydraulic hoses derived from weak capital investment in both public and private sectors in Japan. In addition, sales of golf-related products were affected by stagnant conditions prevailing in the golf market.

Total assets of the company stood at 426.6 billion yen as of September 30, 2001, a decrease of 21.6 billion yen from March 31 of the same year. The decline is mainly attributable to revaluation of investment securities that lowered their market values by 18.7 billion yen in total. The equity ratio dropped to 24.0%, from 25.1% at March 31, 2001.

On a full-year basis, Yokohama Rubber expects sales to increase 1.8 percent to 395.0 billion yen and operating income 11.1 percent to 22.0 billion yen. The company forecasts its full-year net income to reach 6.5 billion yen from 100 million yen of the preceding year.