TOKYO (Dec. 6, 2002) – Yokohama Rubber Co. Ltd.'s North American operations posted an operating profit of $7.5 million during the six-month period ended Sept. 30, reflecting the company's efforts to reverse several years of losses.
The turnaround in North American helped Yokohama back into the black on a global basis as well; the firm posted net income of $15.7 million for the period on sales of $1.48 billion. Tire Group sales were essentially unchanged at $1.04 billion, while sales by the Multiple Business group slid 4.5 percent.
Sales in North America were up 3.9 percent to $281 million, but slow sales in Japan – particularly in the truck and bus tire aftermarket — left the 2002 corporate sales 1.3 percent behind the year-earlier period.
The results back up the forecast the company made in its fiscal 2002 annual report – to break even in 2003, three years earlier than previously hoped for.
In fiscal 2001 (year ended March 31, 2001), Yokohama took a charge of $38.5 million to cover the write-off of Yokohama Tire Corp.´s goodwill, a move made to ``ease financial burdens for years to come.´´ Last year Yokohama Tire cut its loss to $19.1 million as the U.S. unit pared down manufacturing costs and expanded sales of higher value high-performance tires.