TOKYO (Aug. 26, 2002) – Yokohama Tire Corp. expects to trim its losses this year to $9 million and break even in 2003—three years earlier than previously hoped for—parent Yokohama Rubber Corp. Ltd. said in its fiscal 2002 annual report.
Yokohama Tire cut its loss this past year to $19.1 million from $79.8 million in 2000, the company said, as the unit pared down manufacturing costs and expanded sales of higher-value high-performance tires.
Yokohama Rubber's sales in North America rose 12.1 percent last year to $555 million, according to the report.
Operating earnings were $4.35 million in the black, vs. a loss of more than $13 million a year earlier. The company also plans to improve its bottom line by lowering interest-bearing debt and logistics and fixed costs.
After reporting Yokohama Tire's loss last year, Yokohama Rubber disclosed plans to restructure the North American unit, Yokohama Tire. The $79.8 million net loss in fiscal 2001 included a charge of $38.5 million to cover the write-off of Yokohama Tire´s goodwill, a move made to “ease financial burdens for years to come.´´
On a corporate basis, Yokohama Rubber reported net income of $58.9 million on sales of $3.2 billion for the year ended March 31. Operating income of $181.5 million was a 14.4-percent improvement over fiscal 2001.