Tokyo—The Yokohama Rubber Co., Ltd., announced today that its sales and earnings increased solidly in fiscal 2011, April 1, 2010 to March 31, 2011. Net sales at Yokohama increased 11.4% over the previous fiscal year, to 519.7 billion yen; operating income increased 37.5%, to 29.5 billion yen; and net income increased 21.2%, to 13.9 billion yen.
Leading the sales growth were gains in tires and in high-pressure hoses, in sealants and adhesives, and in aircraft products. Yokohama reinforced its sales momentum by securing market acceptance for price increases in tires and other products. Those increases helped offset the adverse effect on earnings of rising prices for raw materials and the appreciation of the yen. Earnings also benefited from an increase in capacity-utilization rates and from progress in trimming costs. The fiscal results announced today reflect a charge of 1 billion yen for the effects of the Great East Japan Earthquake.
Sales in Yokohama's tire operations increased 12.0%, to 411.6 billion yen, and operating income increased 20.9%, to 25.0 billion yen. The sales growth comprised gains in Japan and overseas, which more than offset the adverse effect earnings of the rising prices for raw materials and the appreciation of the yen. In Japan, Yokohama's tire products for improving fuel economy earned a strong market reception, and the company's sales growth in replacement tires outpaced the overall growth in demand. Leading Yokohama's sales growth overseas were strong gains in the United States and in China.
Yokohama posted sales growth of 13.3% in industrial products, to 83.8 billion yen, and operating income increased 5.2-fold, to 3.0 billion yen. Those products center on high-pressure hoses, sealants and adhesives, conveyor belts, antiseismic products, marine hoses, and pneumatic marine fenders. Especially strong gains in high-pressure hoses and growth in sealants and adhesives more than offset weakness in antiseismic products, in marine hoses, and in marine fenders.
Sales in other products, which include aircraft products and golf products, declined 2.0%, to 24.3 billion yen, but operating income climbed 6.9-fold, to 1.5 billion yen. The sales decline reflected weakness in golf products. The surge in operating income reflected sales gains in lavatory modules for commercial aircraft and progress in trimming costs.
Yokohama will change its fiscal year in 2011 to a January–December period, from the former April–March period. That will result in a one-time-only nine-month fiscal period: April 1 to December 31, 2011. The company projects that net sales in that nine-month fiscal period will total 471.0 billion yen, that operating income will total 21.0 billion yen, and that net income will total 11.0 billion yen.