Yokohama has unveiled first-quarter profit attributable to the owners up 18% to JPY9.3bn (US$84.9m), with sales increasing 2.3% to JPY149.2bn.
In the tyres segment, sales revenue increased overall, led by strength in the original equipment business in China and in other Asian markets outside Japan. Sales revenue declined overseas in replacement tyres, reflecting surges in sales in some overseas markets in the first quarter of 2017.
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Those surges were in advance of impending price increases. Japanese business in replacement tyres benefited from strong growth in sales of winter tyres in Japan. That growth reflected a stimulus to demand from heavy winter snowfalls and good market reception for the newly-launched IceGuard 6 studless snow tyre.
Sales revenue increased overall in the MB (Multiple Business) segment, led by business expansion in high-pressure hoses and in industrial materials. The overall sales growth occurred despite declines in Hamatite-brand sealants and adhesives and in aircraft fixtures and components.
In the ATG segment, sales revenue increased on the strength of gains in original equipment business. This segment comprises business in tyres for agricultural machinery, for industrial machinery, and for other off-highway applications and the increase in sales revenue reflected a recovery in demand for agricultural machinery.
Yokohama is maintaining full-year fiscal projections for 2018 it announced in February. Those projections call for profit attributable to owners of parent to total JPY40bn on operating profit of JPY60bn, business profit of JPY63bn and sales revenue of JPY670bn.
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