Tokyo—The Yokohama Rubber Co., Ltd., posted a 19.1% increase in operating income, to 20.9 billion yen, in the nine months ended December 31—the first three quarters of the present fiscal year. That increase is over the same period of the previous year. Sales growth, cost-cutting measures, and the weakening of the yen against the dollar more than offset increases in raw-material costs. Net income rose 2.4-fold, to 19.5 billion yen, including a tax benefit from an earlier write-down of equity in a North American subsidiary.
Yokohama posted a 9.1% increase in net sales, to 333.7 billion yen. Leading the sales growth were gains in Yokohama's tire operations in North America and in Europe. The company also registered sales gains in the Japanese tire market on the strength of growth in winter tires. Sales rose in Yokohama's Multiple Business Group (diversified products), too, as gains in conveyor belts, high-pressure hoses, and sealants more than offset weakness in golf equipment.
Operating income increased 7.2% in Yokohama's Tire Group, to 18.4 billion yen, on a 10.0% increase in sales, to 248.5 billion yen, and increased 6.2-fold in the Multiple Business Group, to 2.5 billion yen, on a 6.6% increase in sales, to 85.2 billion yen. The strong upturn in operating income in the Multiple Business Group resulted mainly from sales growth and from improved profitability in aircraft components.
Management projects that operating income in the fiscal year to March 31, 2006, will increase 9.8% over the previous year, to 23 billion yen, on an increase of 6.5% in net sales, to 447 billion yen. Their projections call for net income to approximately double, to 21 billion yen. These projections are unchanged from what Yokohama announced when it released its interim fiscal results on November 10, 2005.
1. Yokohama Rubber has prepared this information in accordance with accounting principles generally accepted in Japan.
2. The figures presented for operating income under Results by Group and Region are inclusive of intersegment transactions.
3. Under Results by Region, North America refers to the United States and Canada, and Other Regions refers to Oceania, Europe, and Asia.