Tokyo-Yokohama Rubber Co., Ltd., announced today that it has raised its projections for consolidated net sales and earnings in the fiscal year to March 31, 2010. The company now projects net income of 9.4 billion yen, compared with a net loss of 5.7 billion yen in the previous fiscal year. It projects that operating income will rise 49.9%, to 19.2 billion yen, and that net sales will decline 9.1%, to 470.0 billion yen. The projection for net income is 34.3% higher than the projection announced on October 30, 2009; the projection for operating income is 12.9% higher; and the projection for net sales is 1.1% higher.

Underlying the improved sales and earnings outlook is the faster-than-expected recovery in tire sales. Demand from automakers in Japan has been stronger than expected, and heavy snowfall has generated stronger-than-anticipated demand for winter tires in Japan. In addition, tire demand has exceeded forecasts in markets outside Japan, especially in Asian nations. The upturn in sales has raised Yokohama's capacity utilization rate, meanwhile, which has fortified profitability further.