The Yokohama Rubber Co., Ltd., has finalized its results for the first three quarters (April 1 to December 31, 2004) of fiscal 2005. Net sales increased 3.0% from the previous corresponding period, to ¥305.9 billion. This reflected strong tire sales, particularly overseas, which offset the impact of a high yen. Operating income dropped 2.2%, to ¥17.5 billion, owing to higher prices of raw materials and a rise in selling, general and administrative costs. Ordinary income gained 4.6%, to ¥16.0 billion, as a result of reductions in interest expense and in foreign exchange losses. Net income was down 6.9%, to ¥8.1 billion, because of inventory losses and a loss on devaluation of investment securities.
Tire sales were solid overseas, especially in North America, Asia, and Europe, while sales of replacement tires grew in Japan. Sales of the Tires Group therefore increased 4.3%, to ¥226.0 billion, with operating income jumping 16.8%, to ¥17.1 billion.
In contrast, sales of the Multiple Business Group slipped 0.6%, to ¥79.9 billion. This was due to a decline in sales of golf products, which overshadowed an improved performance in automotive sealants and adhesives. Segment operating income plunged 87.5%, to ¥404 million, mainly because of the lower sales of golf products and a decline in profits from aircraft components.
Management has retained the full-year projections it announced on November 11, 2004. These are for a 4.6% gain in net sales, to ¥420 billion, a 9.1% rise in operating income, to ¥23 billion, a 4.3% increase in ordinary income, to ¥18 billion, and a 3.2% drop in net income, to ¥10 billion.