TOKYO, AUGUST 9, 2005--The Yokohama Rubber Co., Ltd. today announced its consolidated results for the first quarter of fiscal 2006 (April 1 to June 30, 2005). Net sales for the quarter increased 5.7% from the previous corresponding period, to 96.2 billion yen, reflecting a rise in domestic and overseas sales of tires and expanded sales of Multiple Business Group products, centered on industrial materials and aircraft components. However, a jump in raw materials costs and increased selling, general and administrative expenses caused operating income to drop 14.7%, to 2.8 billion yen. Net income rose 51.8%, to 1.5 billion yen, mainly owing to a decreased evaluation loss on marketable securities and lower pension and severance costs.
In the Tire Group, sales expanded 5.2%, to 69.9 billion yen, on the strength of favorable sales overseas, particularly in North America and Europe. Domestic tire sales grew steadily. Nonetheless, segment operating income declined 12.7%, to 2.9 billion, reflecting rising raw materials costs and startup expenses related to the establishment of production facilities in Asia.
Sales of the Multiple Business Group rose 6.9%, to 26.3 billion yen, owing to improved demand for aircraft components, conveyor belts and marine hoses. A segment operating loss of 32 million yen, compared with operating income of 10 million yen in the first quarter of fiscal 2005, stemmed from increased raw materials costs and a decrease in sales of golf products.
Overview of Results for First Quarter of Fiscal 2006 (ended June 30, 2005)
(1)This information has been prepared in accordance with generally accepted accounting principles in Japan.
(2)In Segment Information, "Sales" indicates only sales to third parties; "Operating income" includes income from transactions between segments.
(3)In Results by Region, "North America" includes the United States and Canada, and "Other Regions" includes Oceania, Europe, and Asia.