Yokohama has announced first-half profit attributable to its parent up 39% to JPY11.4bn (US$103m), with a 16% increase in net sales to JPY310.8bn.
The performance benefited from domestic and overseas sales gains in the company’s Tyres segment, from improvements in high-pressure hoses and in Hamatite-brand automotive sealants in Yokohama’s Multiple Business segment, as well as from the first inclusion of Alliance Tyre Group in the company’s interim consolidated results.
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Yokohama acquired Alliance Tyre Group, which produces Tyres for agricultural and forestry machinery and for other off-highway applications, on 1 July last year and has incorporated it in its consolidated accounts as the ATG segment.
Earnings benefited from the sales increases, from price increases for tyres Yokohama instituted in Japan in April and subsequently and from the weakening of the yen.
Those positive factors more than offset the adverse earnings effect of an upward trend in raw material prices.
Management has revised upward the projection announced in February for full-year operating income, taking into account stronger-than-anticipated operating profitability in the fiscal first half, continued weakness in the JPY and lower-than-expected raw material prices.
The revised projection calls for operating income of JPY50bn, a 5.3% increase, while sticking to full-year projections for profit attributable to owners of the parent and net sales announced in February.
Those projections call for profit attributable to owners of parent of JPY30bn and for net sales of JPY660bn.
