Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • TBC Corp. to make donation to company charity to reward vaccinated employees
      Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
      Cioffi: Will remote working be the new normal?
    • Light trucks/CUVs to take 82% of new U.S. sales by 2028 — SEMA
      SEMA closes deal for SEMA Garage property in Michigan
      Conti adding dynamic driving simulator at German R&D center
      Yokohama gains OE fitments on BMW, Mercedes-AMG sport utilities
    • Goodyear to add 'chatbot' feature to consumer-facing websites
      Prometeon's 2020 earnings off slightly on 15% lower sales
      Light trucks/CUVs to take 82% of new U.S. sales by 2028 — SEMA
      Pirelli adds 3rd North American bicycle tire distributor
    • Michelin adapts 'QuickScan' tire monitoring system to cars
      Prometeon's 2020 earnings off slightly on 15% lower sales
      Fisher: Expect robust recovery in last half of year
      Vipal targets North America for machinery sales growth
    • Bridgestone part of Louisiana environmental settlement
      New York chipping in $3M+ toward Sumitomo factory expansion
      SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
    • Michelin adapts 'QuickScan' tire monitoring system to cars
      Prometeon's 2020 earnings off slightly on 15% lower sales
      Goodyear to highlight international racing effort in ‘GoRacing' e-magazine
      TravelCenters honors two drivers with Citizen Driver awards
    • GT Radial named Formula Drift PROSPEC spec tire
      4WP partnering with CORVA to help protect off-roading in California
      Goodyear to highlight international racing effort in ‘GoRacing' e-magazine
      Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
    • Yokohama OHT adds severe-duty solid tire to Galaxy brand
      Bosch adds 22 aftermarket parts in Q1
      Snap-On introduces TreadReader handheld tire scanner
      Vogue Tyre introduces ‘biggest, boldest' red stripe tire
    • Goodyear to add 'chatbot' feature to consumer-facing websites
      Michelin adapts 'QuickScan' tire monitoring system to cars
      4WP partnering with CORVA to help protect off-roading in California
      TravelCenters honors two drivers with Citizen Driver awards
    • Fisher: Expect robust recovery in last half of year
      Bosch adds 22 aftermarket parts in Q1
      Marinucci: Detailed instructions will save time
      Bartec introduces TPMS software updates
    • Light trucks/CUVs to take 82% of new U.S. sales by 2028 — SEMA
      WTC webinar to address tire/wheel-balancing process errors
      SEMA closes deal for SEMA Garage property in Michigan
      SEMA picks site in Michigan for 2nd SEMA Garage
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Coopers are ready to rock: Cooper Tire, Alice Cooper seek best garage band
      Last Mile: Delivery surge raises demand for medium truck tires
      Nexen touting manufacturing quality milestone
      Apollo isn't planning U.S. plant — yet
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TPMS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
September 10, 2001 02:00 AM

Yokohama to restructure U.S. unit after 2000 loss

Bruce Davis
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    TOKYO-Yokohama Rubber Co. Ltd. plans to restructure its Yokohama Tire Corp. subsidiary after the U.S. unit fell $13.4 million into the red last year on an operating basis and reported a $79.8 million net loss.

    The restructuring will include revamping the management structure, although Yokohama officials in Japan said there were ``no personnel changes to report.'' Yokohama Tire officials in Fullerton, Calif., referred all inquiries to Yokohama Rubber in Japan.

    Yokohama's sales in North America for the year ended March 31 slipped 5.9 percent, to $557.8 million, as demand for truck and bus tires collapsed, leading to lower volume and intensified price competition, Yokohama said in its recently released annual report.

    The $79.8 million net loss includes a charge of $38.5 million to cover the write-off of Yokohama Tire's goodwill. Yokohama said it decided to write off the goodwill in one lump sum, instead of over years, in order to ``ease financial burdens for years to come.''

    Yokohama Rubber said it expects to trim the loss in North America to $20 million in fiscal 2002 and break even by fiscal 2006. To do so, the firm plans to improve logistics and update the product line across the board, in addition to revamping management.

    The company provided no details on these planned changes, other than to say there were no changes planned at the company's tire plant in Salem, Va., or with its three-way truck tire joint venture, GTY Tire in Mount Vernon, Ill. Despite the North American losses, Yokohama Rubber returned to the black, reporting a fiscal 2001 net profit of $867,993 on sales of $3.5 billion for the year ended March 31.

    The losses did, however, impact Yokohama's tire division profits, as operating income fell 6.7 percent to $103.7 million and sales slipped 0.9 percent to $2.45 billion.

    For fiscal 2002, Yokohama forecasts 16-percent growth in operating income and a 3-percent rise in sales.

    Over the past two years, Yokohama has sought to improve its balance sheet by reducing assets by more than $250 million, trimming personnel by 1,191 jobs and cutting interest-bearing debt by nearly $200 million, according to the annual report.

    For the current year, Yokohama will complete the closing of its Hiratsuka, Japan, tire plant by December-about three months ahead of schedule-and embark on a project to increase daily capacity at its plant in the Philippines by 13.5 percent, to 5,900 units by next year.

    Yokohama also has agreed in principle to cooperate more closely with Continental A.G. in tire marketing and manufacturing.

    Pending completion of a deal later this year, Conti and Yokohama jointly will promote sales of the companies' tires to Japanese vehicle makers, and Conti will make capacity available starting in 2002 in North America for making Yokohama-branded car tires.

    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award