TOKYO (Feb. 14, 2014) — Yokohama Rubber Co. Ltd. (YRC) reported record sales and income for fiscal 2013, reflecting a recovery in the firm's tire business in North America and China.
Operating income jumped 14 percent to $579.8 million on 7.5-percent higher sales of $6.16 billion. Net income was up 7.3 percent to $358.3 million.
In addition to sales gains in China and North America, Yokohama said its results benefited from strong sales of high-pressure hoses, industrial materials and aircraft fixtures and components together with a decline in raw materials costs and the weakening yen/dollar value.
The strong showing prompted YRC management to call for another year of record sales and earnings. The company projects that operating and net income will improve about 11 and 7 percent, respectively, with sales growing about 7.5 percent.
Yokohama's tire operations reported 6.1 percent better operating income of $471 million on 7.9-percent higher sales of $4.92 billion. YRC said the recoveries in North America and 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, bolstered by gains in original equipment and replacement tires, including "vigorous" demand for fuel-efficient vehicles.
YRC's business in North America grew 21.2 percent to $1.38 billion. Operating income, however, slid 15 percent fto $49.8 million.