Tokyo - The Yokohama Rubber Co., Ltd., announced today that its net sales, operating income, and net income climbed to record levels in fiscal 2013 (January to December 2013) for the second consecutive year. The robust sales and earnings performance reflected a recovery in tire business in North America and China and strong sales of winter tires in Japan. Also contributing to the sales and earnings gains were strong sales of high-pressure hoses, industrial materials, and aircraft fixtures and components. In addition, earnings benefited from a decline in raw material costs and from the weakening of the yen against the US dollar.
Net income at Yokohama in 2013 increased 7.3% over the previous year, to 35.0 billion yen, on a 14.0% increase in operating income, to 56.6 billion yen, and a 7.5% increase in net sales, to 601.6 billion yen. Management abides by its intention, announced in August 2013, to increase the annual dividend 2 yen, to 22 yen. That would comprise the interim dividend of 10 yen, up from 8 yen in 2012, and a proposed year-end dividend of 12 yen, the same as in 2012.
Operating income in Yokohama's tire operations increased 6.1%, to 46.0 billion yen, and sales increased 7.9%, to 479.5 billion yen. In overseas business, the recovery in sales volume in North America and in China offset the adverse effects of slumping demand in Russia and elsewhere in Europe and escalating price competition worldwide. Yokohama posted overall sales growth in Japan, meanwhile, bolstered by gains in original equipment tires and in replacement tires.
The Japanese sales gain in original equipment tires occurred despite a decline in unit volume attributable to declining vehicle production. It reflected vigorous demand for low-fuel-consumption vehicles, a sector that Yokohama serves with a large range of tire sizes, and Yokohama's success in winning fitments on additional vehicle models. Prices softened in Japanese market for replacement tires. Yokohama posted strong sales of summer tires, however, and recorded record unit volume in winter tires.
In Yokohama's industrial products business, operating income increased 51.2%, to 7.7 billion yen, on a 5.5% increase in sales, to 96.9 billion yen. That business consists mainly of high-pressure hoses, sealants and adhesives, conveyor belts, anti-seismic products, marine hoses, and marine fenders. Leading the growth in sales and earnings were strong sales gains in high-pressure hoses in North America and in China and global sales growth in marine fenders, in marine hoses, and in conveyor belts.
Yokohama's operating income in other products increased 136.1%, to 3.0 billion yen, on an 8.5% increase in sales, to 25.2 billion yen. The company's business in this category centers on aircraft fixtures and components and on golf equipment. Highlighting Yokohama's business in aircraft fixtures and components were sales gains in lavatory units for commercial aircraft. Japan's market for golf equipment showed signs of recovery, meanwhile, and Yokohama achieved strong sales in golf clubs with its iD nabla RED and with its egg.
In fiscal 2014, Yokohama's projections call for another year of record sales and earnings. The company projects that net income will reach 37.5 billion yen on operating income of 63.0 billion yen and net sales of 647.0 billion yen.