News Release

Consolidated Financial Results for First Quarter ended June 30, 2005

2005.August.10

  • Management relation

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)

Notes:
(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.