Yokohama has recorded first quarter profit attributable to its parent up 56% to US$50.1m on a 32% increase in operating income to JPY9.1bn and a 14.2% rise in net sales, to JPY47.7bn.
The strong fiscal performance benefited most notably from overseas sales gains in the company’s Tyres segment, from overseas sales gains in high-pressure hoses and in Hamatite-brand automotive sealants in Yokohama’s MB (Multiple Business) segment, and from the first-time inclusion of Alliance Tyre Group in the company’s consolidated results.
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Yokohama acquired Alliance Tyre Group, which produces tyres for agricultural and forestry machinery and for other off-highway Tyres, on 1 July last year and has incorporated that company’s operations in its consolidated accounts as the ATG segment.
In Yokohama’s Tyres segment, operating income increased 28.4%, to JPY6.9bn, on a 4.3% increase in sales to JPY105.2bn. Business expanded strongly in the original equipment sector, led by growth in China. Business expanded, too, in the replacement sector.
Sales in that sector increased in unit volume and in value, led by gains in North America. Also contributing to the sales growth in replacement tyres were gains in Europe, supported by progress in cultivating sales channels.
Geographically, Yokohama’s aggregate tyre sales were basically unchanged in Japan in unit volume and in value.
Operating profitability increased in Japan, however, driven by improvement in the company’s sales portfolio. That improvement centred on sales gains for Yokohama’s global flagship brand, ADVAN, and for the company’s BluEarth line of fuel-saving tyres.
