The Yokohama Rubber Co., Ltd., has finalized its results for the first half of fiscal 2005 (April 1 through September 30, 2004). Net sales advanced 4.3% from the previous corresponding term, to 89.7 billion. This reflected solid tire sales overseas, which offset the impact of a higher yen. Operating income declined 6.3%, however, to .3 billion, owing to hikes in the prices of natural rubber and other raw materials, as well as higher logistics costs stemming from increased export volume and a jump in shipping charges. Net income plunged 51.6%, to 99 million. This was because of inventory losses and a loss on devaluation of securities investment.
Sales were strong overseas, particularly in Europe, Asia, and the Middle East. Sales of the Tires Group thus gained 6.5%, to ].4 billion. Operating income from this segment rocketed 73.0%, to .5 billion, on cost-cutting and improved revenues and earnings at subsidiaries.
In the Multiple Business Group, however, sales slipped 1.0%, to ,.4 billion, as a downturn in golf products and conveyor belts overshadowed a favorable performance in high-pressure hoses and sealing materials. Segment operating income plummeted 68.7%, to 800 million. The factors here were higher raw materials costs and lower sales of golf products and the deteriorating earnings of aircraft components.
For the full year, ending March 31, 2005, management's projections are for a 4.6% gain in net sales, to billion, a 9.1% rise in operating income, to billion, and a 3.2% drop in net income, to billion.